Question

The employees of Vintage Clothes achieved all of the sales goals for 2017. Vintage decides to reward the employees with a bonus of​ 20% on annual net​ income, after deducting the bonus. The net income before the calculation of the bonus is​ $312,000. What is the amount of the​ bonus? (Round your final answer to the nearest​ dollar.)

Answer 1

$52,000

Step-by-step explanation:

Bonus is 20% on annual net​ income, after deducting the bonus.

Let the annual income after deducting bonus be g

Then,

Bonus = 20% of g

= 0.2g

Annual income before bonus = annual income after bonus + bonus

312,000 = g + 0.2g

g = 312000/1.2

g = $260,000

Bonus = 0.2g

= 0.2 × 260,000

= $52,000