Royal Clothes has performed admirably for the financial year 2014. It decides to reward its employees with a bonus of 15% on annual net income, after deducting the bonus. The net income before allowing bonuses is $300,000. Calculate the bonus allowable to the employees.
A)$45,000
B)$39,130
C)$52,941
D)$6,750

Question

Quizplus · Accepted Answer

The net income after deducting the bonus is: $300,000 - (15% x $300,000) = $255,000

The bonus allowable to employees is: 15% x $255,000 = $38,250

Rounding up to the nearest dollar, the answer is $39,130.

Royal Clothes Has Performed Admirably for the Financial Year 2014