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Compa-ratio = Employee pay ÷ Range midpoint. Here: $72,000 ÷ $80,000 = 0.90 or 90%, so C is correct. In PHR Total Rewards, compa-ratio is a core tool for pay administration. Values below 100% indicate pay below midpoint; above 100% indicate pay above midpoint. Interpreting 90% depends on the organization’s pay philosophy, performance, time in role, and market competitiveness. Slightly below midpoint may be appropriate for a newer or developing performer; however, persistent 90% for a fully proficient engineer in a hot market may suggest lagging competitiveness or internal equity issues. Option A (80%) and B (85%) are miscalculations and would imply larger gaps than exist. Option D (110%) is incorrect and would indicate a premium over midpoint, often used for high performers, scarce skills, or retention risk. The PHR blueprint expects familiarity with pay structures, range penetration, range spreads, merit matrices, and pay equity reviews. HR should examine performance ratings, market data, and parity across comparators; if warranted, plan progression moves via merit, market adjustments, or promotional opportunities consistent with budget and policy.