Fred is considering three job offers in advertising. • Afull-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. What is the GROSS MONTHLY INCOME for the SALES position?
Fred is considering three job offers in advertising. • Afull-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. What is the GROSS MONTHLY INCOME for the SALES position?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A. $1,153.85
B. $5,000
C. $2,500
D. $2,307.69
Transcribed Image Text: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.
What is the GROSS MONTHLY INCOME for the SALES position?
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