Amy Tan Earns $7,200 Per Month as the Only Employee

question 28

Essay

Amy Tan earns $7,200 per month as the only employee of a small shop. FICA taxes on her salary are 7.65 percent of the first $50,000. Federal income taxes are withheld at the rate of 30 percent and state income taxes at the rate of 7 percent. Her employer is subject to 0.8 percent FUTA tax and 3.0 percent SUTA tax.
Prepare the journal entries to be made by her employer for the month of January. (Round to the nearest dollar.)

Understand the key elements and strategies of integrative bargaining.

Differentiate between roles played by mediators, arbitrators, conciliators, and intermediaries in dispute resolution.

Identify and explain the characteristics of distributive and integrative bargaining.

Recognize the importance and implications of having a BATNA in negotiations.

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Definitions:

Market Demand

The aggregate amount of a product or service all buyers in a market are prepared to buy at different price points.

Competitive Industry

An industry structure where many firms compete for market share, with no single firm dominating the market.

Product Price

The amount of money charged for a single unit of a product, determined by various factors including production costs, demand, and competition.

Economic Resources

Resources that are available to firms and individuals, such as labor, capital, and land, used to produce goods and services.