Question

Sambuca Juice, Inc. makes donations, pays taxes, and gives employee bonuses from the company's annual income. The donations budget is 5% of the company's income. Taxes represent 12% of the income after deducting donations. The bonus is set to be 14% of the income after deducting both donations and income taxes. The company wants to spend $75,000 on bonuses. How much annual income do they need to generate?

Answer 1

Let, the companies annual income be x.

Donation budget = 5% of x.

Hence, Donation = $\frac{5}{100} x= \frac{1}{20} x$ ... (1)

Taxes represent 12% after deducting donations.

Hence, taxes is shown as $\frac{12}{100} (x-\frac{x}{20} ) = \frac{12}{100} (\frac{19x}{20} )$ ... (2)

Bonus is 14% after deducting the donations and taxes.

$\frac{14}{100} (x-\frac{12}{100} (\frac{19x}{20} ))$

Bonus = $ 75000

$75000=\frac{14}{100} (x-\frac{12}{100} (\frac{19x}{20} ))$

$75000=\frac{14}{100} (x-\frac{228x}{2000} )$

$75000=\frac{14}{100} (\frac{2000x-228x}{2000} )$

$75000=\frac{14}{100} (\frac{1772x}{2000} )$

$75000=\frac{24808x}{200000}$

x=  $ 604643.66

Annual income of the company is $ 604643.66