Average Tax on a Professor's Income of $100,000 Is 18percent

question 82

Multiple Choice

average tax on a professor's income of $100,000 is 18percent, and the marginal tax rate above $100,000 is 45 percent.If the professor teaches during the summer and earns anadditional $10,000 (bringing her total earnings for the year to$110,000) , how much of the summer income does she keep afterpaying taxes?

• A)$4,500
• B)$1,800
• C)$6,300
• D)$5,500

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Definitions:

Measuring Efficiency

The process of evaluating the performance of a system, organization, or component by comparing its output with its input.

Variable Cost System

An accounting approach where costs that vary directly with the level of output are only recorded as product costs, contrasting with full costing methods.

Manufacturing Cost

The total expense involved in the production of goods, including materials, labor, and overhead costs.

Normal Standards

Predetermined benchmarks or criteria that are set to measure efficiency or performance levels in various business operations.