Margo Dhang Is Paid $8 Per Hour Plus Time-And-One-Half for Hours

question 148

Essay

Margo Dhang is paid $8 per hour plus time-and-one-half for hours over 40 for a given week.During the week of January 21,Margo worked 46 hours.Social security taxes are 6.2 percent,Medicare taxes are 1.45 percent,$50 is withheld for federal income taxes,$12 is withheld for state income taxes,and $15 is withheld for medical insurance.In addition,Margo's employer must pay Social Security taxes of 6.2 percent,Medicare taxes of 1.45 percent,state unemployment taxes of 5.4 percent,and federal unemployment taxes of 0.8 percent.Calculate (a)Margo's gross earnings, (b)Margo's take-home pay, (c)the employer's payroll taxes expense,and (d)the total cost of employing Margo for the week.Round all amounts to the nearest penny.
a.$392.00 [(40 ´ $8)+ (6 ´ $12)]

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Definitions:

Innovative Product

A new or significantly improved product that introduces a novel feature or fulfills a specific need in a new way.

Skimming Pricing

A pricing strategy where a high price is set for a new product to maximize profits from segments willing to pay more, before prices are lowered over time.

Demand-oriented

A pricing strategy where prices are set based on the perceived value to the customer or demand for the product, rather than on the cost of the product or market competition.

Pricing Approach

Strategies and methodologies used by companies to set the selling price of their products or services, taking into account costs, market demand, competition, and profit margins.