The Manager of Weiser Is Given a Bonus Based on Net

question 99

Multiple Choice

The manager of Weiser is given a bonus based on net income before taxes.The net income after taxes is $59,500 for FIFO and $49,000 for LIFO.The tax rate is 30%.The bonus rate is 20%.How much higher is the manager's bonus if FIFO is adopted instead of LIFO?

• A)$15,000
• B)$21,000
• C)$3,000
• D)$10,500

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Definitions:

Numerator

The top part of a fraction that represents how many parts of the whole or group are being considered.

Denominator

The bottom part of a fraction that indicates into how many parts the whole is divided.

Synthetic Division

A simplified manual method for dividing polynomials, particularly useful for dividing by linear factors.

Division

Division is one of the four basic arithmetic operations, representing the action of dividing a number into equal parts.