Fred is considering three job offers in advertising. A full-time position as a coordinator that pays a salary of $40,000 per year. A full-time position as a designer that pays an hourly wage of $28.  The job assumes five 8-hour days per week. A sales representative that pays a 5% commission.  Sales reps typically sell an average of $100,000 per month in advertising. The following are the specifics about the benefits of the job opportunities: The U.S. government will deduct Social Security (6.2%) and Medicare (1.45%). Fred will deduct 15% of Gross Income to cover Federal Income Tax. Fred does not live in a state with State Income Tax. Fred is planning on taking two weeks of vacation and has typically been sick 3 days per year. The Coordinator job includes two weeks of paid vacation and five paid sick days per year, paid health insurance, life insurance costing $35 per month, and a fully paid retirement plan. The Designer job includes five paid vacation days and three paid sick days per year, paid health insurance, life insurance costing $35 per month, and a retirement plan that costs 3% of after tax income. The Sales job has no paid vacation or sick days, paid health and life insurance, and a retirement plan that costs $350 per month. 15.  What is the AFTER-TAX MONTHLY INCOME for the DESIGNER position? A. $3,754.05 ​​​​ B. $3,768.61 ​​​​ C. $4,775.68 ​​​​ D. $1,099.28

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Fred is considering three job offers in advertising.

  • A full-time position as a coordinator that pays a salary of $40,000 per year.
  • A full-time position as a designer that pays an hourly wage of $28.  The job assumes five 8-hour days per week.
  • A sales representative that pays a 5% commission.  Sales reps typically sell an average of $100,000 per month in advertising.

The following are the specifics about the benefits of the job opportunities:

  • The U.S. government will deduct Social Security (6.2%) and Medicare (1.45%).
  • Fred will deduct 15% of Gross Income to cover Federal Income Tax.
  • Fred does not live in a state with State Income Tax.
  • Fred is planning on taking two weeks of vacation and has typically been sick 3 days per year.
  • The Coordinator job includes two weeks of paid vacation and five paid sick days per year, paid health insurance, life insurance costing $35 per month, and a fully paid retirement plan.
  • The Designer job includes five paid vacation days and three paid sick days per year, paid health insurance, life insurance costing $35 per month, and a retirement plan that costs 3% of after tax income.
  • The Sales job has no paid vacation or sick days, paid health and life insurance, and a retirement plan that costs $350 per month.

15.  What is the AFTER-TAX MONTHLY INCOME for the DESIGNER position?

A. $3,754.05 ​​​​

B. $3,768.61 ​​​​

C. $4,775.68 ​​​​

D. $1,099.28

PLEASE HELP ME 

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