Nature Company has an agreement to pay each sales manager a bonus of 5% of the entity's earnings and each sales personnel 2%. Nature has two sales manager and two sales personnel. The income for the year before bonus and tax is P5,000,000. THe income tax rate is 30% of income after bonus. The bonus is based on net income after bonus and after tax. How much is the total bonus of both sales personnel? (round the final answer to the nearest whole number)

Nature Company has an agreement to pay each sales manager a bonus of 5% of the entity's earnings and each sales personnel 2%. Nature has two sales manager and two sales personnel. The income for the year before bonus and tax is P5,000,000. THe income tax rate is 30% of income after bonus. The bonus is based on net income after bonus and after tax. How much is the total bonus of both sales personnel? (round the final answer to the nearest whole number)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Nature Company has an agreement to pay
each sales manager a bonus of 5% of the
entity's earnings and each sales personnel
2%. Nature has two sales manager and two
sales personnel. The income for the year
before bonus and tax is P5,000,000. THe
income tax rate is 30% of income after bonus.
The bonus is based on net income after
bonus and after tax.
How much is the total bonus of both sales
personnel? (round the final answer to the
nearest whole number)

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