Explain the reason why socio economic issues pose challenge to business
1 answer:
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Answer: (a) 58500 and (b) 19.5%
Explanation:
Five workers salaries are as follows:
Amy: $20,000
Betty: $40,000
Charlie: $60,000
Dimitry: $80,000
Evelyn: $100,000
As given in the question that there are different tax slabs for different income level.
slab 1 - 15% for all income up to $50,000
slab 2 - 30% for any income earned above $50,000
Hence,
Tax paid by Amy = 20000 × 15% = $3000
Tax paid by Betty = 40000 × 15% = $6000
Tax paid by charlie = 50000 × 15% + 10000 × 30% = $10500
Tax paid by Dimitry = 50000 × 15% + 30000 × 30% = $16500
Tax paid by Evelyn = 50000 × 15% + 50000 × 30%= $22500
∴ Total tax revenue paid by the five workers = 3000+6000+10500+16500+22500
= 58,500
Tax revenue as percent of total income =
=
= 19.5%