Q:

If total employee benefits are calculated as a percentage of their gross pay, which of the following employees receives the largest percentage of their gross pay in employee benefits?a.Employee A: gross pay $32,600 , total job benefits $33,600b.Employee B: gross pay $32,900 , total job benefits $34,000c.Employee C: gross pay $33,400 , total job benefits $33,900d.Employee D: gross pay $33,700 , total job benefits $34,700

Accepted Solution

A:
Consider all employees.A. gross pay $32,600 - 100%, total job benefits $33,600 - x%.Then [tex]\dfrac{32,600}{33,600}=\dfrac{100}{x},\\ \\32,600\cdot x=33,600\cdot 100,\\ \\x=\dfrac{33,600\cdot 100}{32,600}=\dfrac{33,600}{326} \approx 103.07.[/tex]Employee A receives 3.07% of gross pay in employee benefits.B.gross pay $32,900 - 100%, total job benefits $34,000 - x%.Then [tex]\dfrac{32,900}{34,000}=\dfrac{100}{x},\\ \\32,900\cdot x=34,000\cdot 100,\\ \\x=\dfrac{34,000\cdot 100}{32,900}=\dfrac{34,000}{329} \approx 103.34.[/tex]Employee B receives 3.34% of gross pay in employee benefits.C.gross pay $33,400 - 100%, total job benefits $33,900 - x%.Then [tex]\dfrac{33,400}{33,900}=\dfrac{100}{x},\\ \\33,400\cdot x=33,900\cdot 100,\\ \\x=\dfrac{33,900\cdot 100}{33,400}=\dfrac{33,900}{334} \approx 101.50.[/tex]Employee C receives 1.50% of gross pay in employee benefits.D.gross pay $33,700 - 100%, total job benefits $34,700 - x%.Then [tex]\dfrac{33,700}{34,700}=\dfrac{100}{x},\\ \\33,700\cdot x=34,700\cdot 100,\\ \\x=\dfrac{34,700\cdot 100}{33,700}=\dfrac{34,700}{337} \approx 102.97.[/tex]Employee D receives 2.97% of gross pay in employee benefits.Answer: correct choice is B.