Net Corporation's Sales Office and Manufacturing Plant Are Located in State

Net Corporation's sales office and manufacturing plant are located in State X. Net also maintains a manufacturing plant and sales office in State W. For purposes of apportionment, X defines payroll as all compensation paid to employees, including contributions to § 401(k) deferred compensation plans. Under the statutes of W, neither compensation paid to officers nor contributions to § 401(k) plans are included in the payroll factor. Net incurred the following personnel costs.
$\begin{array}{lrrr}&\text {State X}&\text {State W}&\text {Totals}\\\text { Wages and salaries for employees other }\\\text { than officers } & \$ 500,000 & \$ 300,000 & \$ 800,000 \\\text { Salaries for officers } & 300,000 & 150,000 & 450,000 \\\text { Contributions to } \S 401(\mathrm{k}) \text { plans } &200,000&50,000&250,000\\\text { Totals } & \$ 1,000,000 & \$ 500,000 & \$ 1,500,000\end{array}$
Net's payroll factor for State W is:

A) 50.00%.
B) 37.50%.
C) 33.33%.
D) 0.00%.