In an effort to keep low-wage workers' salaries commensurate with the cost of living, a number of states have amended their constitutions to allow the minimum wage to be adjusted with inflation. You are the accountant for a company that owns a chain of 14 fast food restaurants in a state which adjusts the minimum wage for Inflation. Each restaurant employs 45 workers, each averaging 20 hours per week at the current federal minimum wage, $7.25 per hour. (a) How many hours at minimum wage are paid out each week by the company? hr (b) At the current rate of $7.25 per hour, what isthe amount (in $) of the weekly "minimum wage" portion of the restaurant's payroll? %24 (c) If the inflation rate this year 0.9%, calculate the "adjusted" minimum wage rate (in $ per hour) to be paid next year. (Round your answer to two decimal places.) %24 per hour (d) How much in "additional wages" will the company have to pay out next year at the adjusted rate (in $)? (Round your answer to the nearest dollar.) (e) Suggest some ways that the restaurant chain or other small businesses can offset the increase in payroll and subsequent decrease in profit as a result of the minimum wage hike. Go to www.dol.gov/whd/minwage/america.htm and click on your state to find the current minimum wage.
In an effort to keep low-wage workers' salaries commensurate with the cost of living, a number of states have amended their constitutions to allow the minimum wage to be adjusted with inflation. You are the accountant for a company that owns a chain of 14 fast food restaurants in a state which adjusts the minimum wage for Inflation. Each restaurant employs 45 workers, each averaging 20 hours per week at the current federal minimum wage, $7.25 per hour. (a) How many hours at minimum wage are paid out each week by the company? hr (b) At the current rate of $7.25 per hour, what isthe amount (in $) of the weekly "minimum wage" portion of the restaurant's payroll? %24 (c) If the inflation rate this year 0.9%, calculate the "adjusted" minimum wage rate (in $ per hour) to be paid next year. (Round your answer to two decimal places.) %24 per hour (d) How much in "additional wages" will the company have to pay out next year at the adjusted rate (in $)? (Round your answer to the nearest dollar.) (e) Suggest some ways that the restaurant chain or other small businesses can offset the increase in payroll and subsequent decrease in profit as a result of the minimum wage hike. Go to www.dol.gov/whd/minwage/america.htm and click on your state to find the current minimum wage.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Ch. 09 Quiz: Payroll
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DETAILS
BRECMBC9 9.1.029.
MY NOTES
ASK YOUR TEACHER
In an effort to keep low-wage workers' salaries commensurate with the cost of living, a number of states have amended their constitutions to allow the minimum wage to be adjusted with inflation.
You are the accountant for a company that owns a chain of 14 fast food restaurants in a state which adjusts the minimum wage for inflation. Each restaurant employs 45 workers, each averaging 20
hours per week at the current federal minimum wage, $7.25 per hour.
(a) How many hours at minimum wage are paid out each week by the company?
hr
(b) At the current rate of $7.25 per hour, what is'the amount (in $) of the weekly "minimum wage" portion of the restaurant's payroll?
$4
(c) If the inflation rate this year is 0.9%, calculate the "adjusted" minimum wage rate (in $ per hour) to be paid next year. (Round your answer to two decimal places.)
$4
per hour
(d) How much in "additional wages" will the company have to pay out next year at the adjusted rate (in $)? (Round your answer to the nearest dollar.)
$4
(e) Suggest some ways that the restaurant chain or other small businesses can offset the increase in payroll and subsequent decrease in profit as a result of the minimum wage hike.
Go to www.dol.gov/whd/minwage/america.htm and click on your state to find the current minimum wage.
MY NOTES
ASK YOUR TEACHER
DETAILS
BRECMBC99.11.004.
8. [-/0.62 Points]
Solve the problem using 6.2%, up to $128,400 for Social Security tax and using 1.45%, no wage limit, for Medicare tax.
Kristy Dunaway has biweeklv.aross earningas of $1.450 What are her total Social Securitty and Medicare tax withholdinas (in $) for a whale vear?
MacBook Air](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbf25cb98-8a11-4c21-ba85-92c0b2ab3853%2F0f97ab84-38b9-4975-b843-bba73b347488%2Flmlqb08_processed.jpeg&w=3840&q=75)
Transcribed Image Text:f webassign.net
Ch. 09 Quiz: Payroll
CEOS see pay grow 1,000%, an...
Chapter09 Business Math BUS...
Mind Tap Cengage Learning
Viewing Saved Work Revert to Last Response
Cengage Learning
Ch. 09 Quiz: Payroll BUS-20,...
7. [-/0.62 Points]
DETAILS
BRECMBC9 9.1.029.
MY NOTES
ASK YOUR TEACHER
In an effort to keep low-wage workers' salaries commensurate with the cost of living, a number of states have amended their constitutions to allow the minimum wage to be adjusted with inflation.
You are the accountant for a company that owns a chain of 14 fast food restaurants in a state which adjusts the minimum wage for inflation. Each restaurant employs 45 workers, each averaging 20
hours per week at the current federal minimum wage, $7.25 per hour.
(a) How many hours at minimum wage are paid out each week by the company?
hr
(b) At the current rate of $7.25 per hour, what is'the amount (in $) of the weekly "minimum wage" portion of the restaurant's payroll?
$4
(c) If the inflation rate this year is 0.9%, calculate the "adjusted" minimum wage rate (in $ per hour) to be paid next year. (Round your answer to two decimal places.)
$4
per hour
(d) How much in "additional wages" will the company have to pay out next year at the adjusted rate (in $)? (Round your answer to the nearest dollar.)
$4
(e) Suggest some ways that the restaurant chain or other small businesses can offset the increase in payroll and subsequent decrease in profit as a result of the minimum wage hike.
Go to www.dol.gov/whd/minwage/america.htm and click on your state to find the current minimum wage.
MY NOTES
ASK YOUR TEACHER
DETAILS
BRECMBC99.11.004.
8. [-/0.62 Points]
Solve the problem using 6.2%, up to $128,400 for Social Security tax and using 1.45%, no wage limit, for Medicare tax.
Kristy Dunaway has biweeklv.aross earningas of $1.450 What are her total Social Securitty and Medicare tax withholdinas (in $) for a whale vear?
MacBook Air
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