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Re: The tax that the company Z has to pay to the government for a partic
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17 Mar 2025, 15:48
Let T = the total tax that the company has to pay and let P = the total company's profits.
Since it has to pay $6000 plus 6% of the profit above $250,000, T=6000+0.06(P−250000)
It's also given that it pays a tax equivalent to 3% of its profit, so T=0.03∗P
Now we can set the two equations for T equal to find P:
6000+0.06(P−250000)=0.03∗P
6000+0.06P−15000=0.03P
0.03P=9000
P=300000