Manager
Joined: 11 Nov 2023
Posts: 223
Given Kudos: 78
WE:Business Development (Advertising and PR)
Re: The tax that the company Z has to pay to the government for a partic
[#permalink]
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:
\(6000 + 0.06(P - 250000) = 0.03 * P\)
\(6000 + 0.06P - 15000 = 0.03P\)
\(0.03P = 9000\)
\(P = 300000\)