George Is Allowed to Select Fringe Benefits Equal to 10

question 13

Multiple Choice

George is allowed to select fringe benefits equal to 10 percent of his annual salary of $75,000.Which of the following would be taxable if selected?

• A)$4,000 health insurance premium
• B)$5,000 of childcare under a dependent care program
• C)$1,500 country club membership
• D)Discount on company products equal to the gross profit percentage.

---

Definitions:

Skimming Demand

A pricing strategy where a high price is set to "skim" layers of demand from the market sequentially, usually employed during the introduction of a new product.

Penetration Demand

A market strategy focused on increasing market share for an existing product through penetration pricing, advertisement, and sales promotion.

Demand Curve

A graph that relates the quantity sold and price, showing the maximum number of units that will be sold at a given price.

Pricing Approach

Strategies employed by businesses to set the price of their products or services, taking into account costs, demand, and competition.