Question

At Richardson Manufacturing Company, there are two factors that determine the cost of health care. If an employee makes less than $55,000 per year, he pays $40 per month for individual coverage and $85 per month for family coverage. If an employee makes at least $55,000 per year, individual coverage is $70 per month and family coverage is $165 per month. Catherine is a department manager at Richardson. Her annual salary is $68,300. She has family health care. Her employer contributes $935 per month towards her total coverage cost. What percent does Catherine contribute toward the total coverage?

Answer 1

Answer:

15%

Explanation:

Catherine is a departmental manager at Richardson

She earns $68,300 every month

She has family health care

Her employer contributes $935 every year towards total coverage Cost

The first step is to calculate the total contribution

Catherine rate for health care is $165 since her monthly pay is higher than $55,000

Total contribution = $165 + $935

= $1,100

Therefore the percent in which Catherine contributes towards total coverage can be calculated as follows

= 165/1,100 × 100

= 0.15 × 100

= 15%

Hence Catherine contributes 15% towards the total coverage