A Michigan Company Consists of Three Subsidiaries

question 102

Essay

A Michigan company consists of three subsidiaries. Each has the respective average payroll, unemployment reserve fund, and estimated payroll shown in the table below (all figures are in millions of dollars). Any employer in the state of Michigan whose reserve to average payroll ratio is less than 1 must pay 25% of its estimated payroll in unemployment insurance premiums. Otherwise, if the ratio is at least one, the employer pays 13%. The company can aggregate its subsidiaries and label them as separate employers. For example, if subsidiaries 1 and 2 are aggregated, they must pay 25% of their combined payroll in unemployment insurance premiums. Determine which subsidiaries should be aggregated.

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Definitions:

Chest Tube

A medical device used to remove air, fluid, or pus from the intrathoracic space to prevent or treat a collapsed lung or to drain fluid from around the lungs.

Water Seal Chamber

A component of a chest drainage system that prevents air from entering the pleural space while allowing air and fluids to exit, creating a one-way valve mechanism.

Chest X-ray

A diagnostic imaging test that uses a small amount of electromagnetic radiation to produce images of the structures inside the chest, including the heart, lungs, and bones.

Arterial Blood Gas

A test that measures the amounts of oxygen and carbon dioxide in the blood, as well as the acidity (pH) of the blood.