Avantra Inc.is a professional firm with the professional employee group generally in the top tax bracket and the support staff generally in the 15% tax bracket.Due to rising costs and administrative burden,the company is considering discontinuing its dental and eye care insurance plan and instead giving all employees a $600 raise.Based on insurance records the average employee incurs about $400 of dental and eye care expense per year.Which of the following statements is correct?
A) The support staff will generally prefer the raise,and the professional staff will prefer to keep the insurance coverage.
B) The professional staff will generally prefer the raise,and the support staff will prefer to keep the insurance coverage.
C) Employees overall will generally prefer the raise.
D) Employees overall will generally prefer to retain the insurance coverage.
Correct Answer:
Verified
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