Mission Company Has Three Employees What Is Mission Company's Amount for Payroll Taxes for Clark

question 180

Multiple Choice

Mission Company has three employees:
$\begin{array} { c c c } & \text { Gross Pay through July } & \text { Gross Pay for August } \\\text { Smith } & \$ 3,200 & \$ 1,000 \\\text { Cain } & 25,800 & 3,500 \\\text { Clark } & 94,600 & 13,100\end{array}$
$\begin{array} { l c l } \text { Tax } & \text { Rate } & { \text { Applied To } } \\\text { FICA-Social Security } & 6.20 \% & \text { First } \$ 106,800 \\\text { FICA-Medicare } & 1.45 & \text { All gross pay } \\\text { FUTA } & .80 & \text { First } \$ 7,000 \\\text { SUTA } & 5.40 & \text { First } \$ 7,000\end{array}$
What is Mission Company's amount for payroll taxes for Clark?

• A) $946.35
• B) $1,002.15
• C) $1,814.35
• D) $6,234.75
• E) $812.20

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Definitions:

Residual Income

The amount of income that an individual or company has after all personal debts and expenses, including the cost of capital, have been paid.

Return On Investment

A measure used to evaluate the efficiency of an investment, calculated by dividing the benefit (or return) of an investment by its cost.

Investment Opportunity

An asset or item that presents a potential for profitable returns, as in interest, income, or appreciation in value.

Margin

The difference between the selling price of a product and its cost of production, often expressed as a percentage of sales.