Question

Sambuca Juice, Inc. makes donations, pays taxes, and gives employee bonuses from the company's annual income. The donations budget is 5% of the company's income. Taxes represent 12% of the income after deducting donations. The bonus is set to be 14% of the income after deducting both donations and income taxes. The company wants to spend $75,000 on bonuses. How much annual income do they need to generate?

Answer 1

Let, the companies annual income be x.

Donation budget = 5% of x.

Hence, Donation =
`(5)/(100) x= (1)/(20) x` ... (1)

Taxes represent 12% after deducting donations.

Hence, taxes is shown as
`(12)/(100) (x-(x)/(20) ) = (12)/(100) ((19x)/(20) )` ... (2)

Bonus is 14% after deducting the donations and taxes.

`(14)/(100) (x-(12)/(100) ((19x)/(20) ))`

Bonus = $ 75000

`75000=(14)/(100) (x-(12)/(100) ((19x)/(20) ))`

`75000=(14)/(100) (x-(228x)/(2000) )`

`75000=(14)/(100) ((2000x-228x)/(2000) )`

`75000=(14)/(100) ((1772x)/(2000) )`

`75000=(24808x)/(200000)`

x= $ 604643.66

Annual income of the company is $ 604643.66