It's a interesting approach to accounting, except for the fact that the manager is not paid $10k when employers are paid $120k each.

And anyway, that's not the manager who produced that value: it's the sales team, without them the product is literally worthless. So what is manager paid for, again?

And even more interesting question now would be "what are shareholders are paid for anyway, after they've been repaid the initial investment with the interest on top?"