Question

Select the correct answer. A company employs 48 people in various departments. The average annual salary of each employee is $25,000 with a maximum variance of $3,000. What is the range of the total salary that the company pays to its employees annually? A. $1,056,000 ≤ x ≤ $1,344,000 B. $264,000 ≤ x ≤ $336,000 C. $88,000 ≤ x ≤ $112,000 D. $22,000 ≤ x ≤ $28,000

Answer 1

Answer:

A. $1,056,000 ≤ x ≤ $1,344,000

Step-by-step explanation:

The average annual salary of each of the 48 employees is given as;

$25,000

The total salary that the company pays to its employees annually is thus;

$25,000 * 48 = $1,200,000

Now, the total annual maximum variance  of the employees salaries would be;

$3,000 * 48 = $144,000

The lower limit of the total salary that the company pays to its employees annually is calculated as;

$1,200,000 - $144,000 = $1056000

The upper limit of the total salary that the company pays to its employees annually is calculated as;

$1,200,000 + $144,000 = $1344000

Therefore, the range of the total salary that the company pays to its employees annually is;

$1,056,000 ≤ x ≤ $1,344,000