Ask Question
4 June, 23:13

29. Maxwell is trying to decide whether to accept a salary of $60,000 or a salary of $25,000 plus a bonus of 20% of net income after salaries and bonus as a means of allocating profit among the partners. Salaries traceable to the other partners are estimated to be $75,000. What amount of income would be necessary so that Maxwell would consider the choices to be equal? A. $175,000

B. $210,000

C. $285,000

D. $310,000

+1
Answers (1)
  1. 5 June, 00:44
    0
    Maxwell world consider choice equal to $310000

    Explanation:

    given data

    accept a salary = $60,000

    salary = $25,000

    bonus = 20% of net income

    to find out

    amount of income would be necessary so that Maxwell would consider

    solution

    we get here income by bonus that is express as

    bonus = 2 (income - bonus - salary) ... 1

    3500 = 2 (income - (0.2 * 35000) - (0.2 * (75000 + 35000))

    solve it we get

    income = $310000

    so Maxwell world consider choice equal to $310000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “29. Maxwell is trying to decide whether to accept a salary of $60,000 or a salary of $25,000 plus a bonus of 20% of net income after ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers