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AveGali [126]
3 years ago
7

Sambuca Juice, Inc. makes donations, pays taxes, and gives employee bonuses from the company's annual income. The donations budg

et 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?
Mathematics
1 answer:
Lubov Fominskaja [6]3 years ago
4 0

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


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