Question

Magic Door Company has a net income before taxes of $50,000. The company's treasurer estimates that 35% of the company's net income will go to federal and state taxes. How much will Magic Door have left?

Answer 1

Therefore, the Magic Door Company will have 32500$.

Explanation:

From Exercise we have that the Magic Door Company has a net income before taxes of $50,000. We know that 35% of the company's net income will go to federal and state taxes.

So, we have the following proportion

50000 : 100% = x : 35%

100x=35 · 50000

100x=1750000

x=17500$

Now, we get 50000$ - 17500$=32500$

Therefore, the Magic Door Company will have 32500$.