QUESTION IMAGE
Question
sheena suh is paid an 8% commission on sales. during her last pay period she had sales of $19,606 and returns and allowances of $302. find the amounts of her deductions for social security (fica) at 6.2%, for medicare at 1.45%, and for state disability insurance (sdi) at 1%. at the end of this pay period sheena will still be below the fica and sdi maxima.
on what amount of money will sheena pay the various taxes? $
Step1: Calculate net sales
First, we need to find the net sales by subtracting returns and allowances from total sales. The total sales are $19,606 and returns and allowances are $302. So, net sales = total sales - returns and allowances.
$19606 - 302 = 19304$
Step2: Calculate commission income
Sheena is paid an 8% commission on net sales. So, commission income = 8% of net sales.
$0.08\times19304 = 1544.32$
The amount on which she pays taxes is her commission income, which is $1544.32. Wait, no, maybe I misread. Wait, the question is "On what amount of money will Sheena pay the various taxes?" Wait, maybe the taxes are on her earnings, which is her commission. Wait, let's re-express.
Wait, first, net sales: $19606 - 302 = 19304$. Then her commission is 8% of net sales: $0.08\times19304 = 1544.32$. So the amount on which she pays taxes is her commission, which is $1544.32. Wait, but maybe I made a mistake. Wait, the problem says "Sheena Suh is paid an 8% commission on sales. During her last pay period she had sales of $19,606 and returns and allowances of $302. Find the amounts of her deductions... On what amount of money will Sheena pay the various taxes?"
So first, net sales = sales - returns and allowances = 19606 - 302 = 19304. Then her commission (her earnings) is 8% of net sales: 0.08 * 19304 = 1544.32. So the amount on which she pays taxes is her earnings, which is $1544.32. Wait, but let's check again.
Wait, maybe the taxes are on her gross pay, which is her commission. So first, calculate net sales: 19606 - 302 = 19304. Then commission: 0.08 * 19304 = 1544.32. So the amount on which she pays taxes is $1544.32.
Wait, but let's do the steps again:
Step1: Calculate net sales
Net sales = Total sales - Returns and allowances
$19606 - 302 = 19304$
Step2: Calculate commission (earnings)
Commission = 8% of net sales
$0.08\times19304 = 1544.32$
The amount on which she pays taxes is her commission, so $1544.32.
Wait, but maybe the problem is simpler. Maybe the taxes are on her earnings, which is her commission, so first find net sales, then commission. So net sales: 19606 - 302 = 19304. Commission: 0.08*19304 = 1544.32. So the answer is $1544.32.
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\boxed{1544.32}