Question

You have checked model income statements and estimate your payroll expense will be 36% of revenue. You expect sales to be $9,000 per week. What should you budget annually for payroll?

a) $120,960
b) $149,987
c) $168,480
d) $172,012

Answer 1

$168,480

Explanation:

Answer 2

Budget annual payroll = $168,480

Explanation:

Given:

Expect sales per week = $9,000

Revenue over sales = 36% = 0.36

Find:

Budget annual payroll = ?

Computation:

Assume number of week per year = 52

⇒ Budget annual payroll = Expect sales per week × Number of week per year × Revenue over sales

⇒ Budget annual payroll = $9,000 × 52 × 0.36

⇒ Budget annual payroll = $168,480