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The tax that the company Z has to pay to the government for a partic
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17 Mar 2025, 01:13
17 Mar 2025, 01:13
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The tax that the company Z has to pay to the government for a particular month is $6,000 plus 6% of the profit above $250,000. What is the total amount of the profit in dollars that the company makes, if it pays a tax equivalent to 3% of its profit?
A. 240,000
B. 280,000
C. 300,000
D. 320,000
E. 360,000
A. 240,000
B. 280,000
C. 300,000
D. 320,000
E. 360,000
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Re: The tax that the company Z has to pay to the government for a partic
[#permalink]
17 Mar 2025, 15:48
17 Mar 2025, 15:48
1
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:
\(6000 + 0.06(P - 250000) = 0.03 * P\)
\(6000 + 0.06P - 15000 = 0.03P\)
\(0.03P = 9000\)
\(P = 300000\)
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:
\(6000 + 0.06(P - 250000) = 0.03 * P\)
\(6000 + 0.06P - 15000 = 0.03P\)
\(0.03P = 9000\)
\(P = 300000\)
gmatclubot
Re: The tax that the company Z has to pay to the government for a partic [#permalink]
17 Mar 2025, 15:48
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