A company pays tax at a rate of 15% on its first $50,000 of income.If it has $60,000 of taxable income and an average tax rate of 18%,what is the marginal tax rate on its last $10,000 of income?

Name: A company pays tax at a rate of 15% on its first $50,000 of income.If it has $60,000 of taxable income and an average tax rate of 18%,what is the marginal tax rate on its last $10,000 of income?
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Quizplus · Accepted Answer

0.18 × $60,000 = (0.15 × $50,000) + (x × ($60,000 − 50,000))$10,800 = $7,500 + $10,000xx = 0.33, or 33%

A Company Pays Tax at a Rate of 15% on Its