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. 12. What is the GROSS MONTHLY INCOME for the DESIGNER position? $1,120 $2,240 $2,426.67 $4,853.33
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. 12. What is the GROSS MONTHLY INCOME for the DESIGNER position? $1,120 $2,240 $2,426.67 $4,853.33
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 1EA: Garrison Boutique, a small novelty store, just spent $4,000 on a new software program that will help...
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Question
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.
12. What is the GROSS MONTHLY INCOME for the DESIGNER position?
$1,120
$2,240
$2,426.67
$4,853.33
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