Question

Cordelia is an employee of Snaktyme Foods in Missouri. She earns $24,000 annually. Snaktyme has provided uniforms worth $350 and training worth $850 as part of her employment. She contributes 4% to her 401(k), of which her employer matches half. Cordelia's employer pays the following monthly amounts toward her insurance: health, $125; life, $50; AD&D, $30.
Snaktyme Foods pays employer-only taxes and insurance that comprises an additional 14% of Cordelia's annual salary.

What is Cordelia's total annual compensation?A.$28,000B.$31,500C.$29,260D.$29,900

Answer 1

Answer:

option (B) 31,500

Explanation:

Data provided in the question:

Annual earning = $24,000

Worth of uniform = $350

Training worth = $850

Contribution to 401(k) = half of  4% of earning

= 0.5 × 0.04 × $24,000

= $480

monthly amounts toward her insurance:

health = $125

Life = $50

AD&D = $30

Total annual amounts toward her insurance = 12 × [ $125 + $50 +$30 ]

= 12 × 205

= $2,460

Therefore,

Employer taxes and insurance = 14% of $24,000

= $3,360

Therefore,

Cordelia's total annual compensation

= $24,000 + $350 + $850 + $480 + $2,460 + $3,360

= $31,500

Hence,

Answer is option (B) 31,500