Tom's Gross Pay for This Month Is $8,150

question 151

Multiple Choice

Tom's gross pay for this month is $8,150.His gross pay year-to-date,prior to this month totaled $101,000.What is the amount of FICA withheld from Tom's pay for this month?

• A) $623.48
• B) $359.60
• C) $477.78
• D) $118.18

---

Definitions:

Prestige Pricing

A pricing strategy where goods are priced higher than market averages to evoke a sense of luxury or exclusivity.

Reference Pricing

Reference pricing is a pricing strategy wherein the price of a product is determined relative to the price of similar products or a benchmark in the market.

Penetration Pricing

A pricing strategy where the price of a product is set lower than the competitors' to gain market share rapidly.

Price Skimming

Price Skimming is a pricing strategy where a higher initial price is set for a new or innovative product, gradually lowering the price over time as the market saturates or competition increases.