[raven]

Hi. Can anyone help me with this? i got lost after the second step. I’ve completely forgotten algebra –It seems like there are some steps missing. I’m usually able to follow the answer if it shows all the steps. Thanks

ANSWER= 12,000

After three profitable years, Dodd Co. decided to offer a bonus to its branch manager, Cone, of 25% of income over $100,000 earned by his branch. For Year 1, income for Cone’s branch was $160,000 before income taxes and Cone’s bonus. Cone’s bonus is computed on income in excess of $100,000 after deducting the bonus, but before deducting taxes. What is Cone’s bonus for Year 1?

Bonus = 0.25 x ($160,000 – $100,000 – Bonus)

Bonus = 0.25 x ($60,000 – Bonus

Bonus = $15,000 – (.25 x Bonus)

Bonus + (0.25 x Bonus) = $15,000

1.25 (125%) x Bonus = $15,000

Bonus = $15,000 / 1.25

Bonus = $12,000

A- pass
F- pass
R- pass
B - August 2014 - pass - YAY!!!!

[Kimboroni]

I think it might be a bit clearer if we think of the bonus as the variable B.

B = 0.25 x ($160,000 – $100,000 – B)

B = 0.25 x ($60,000 – B)

Here, you are using the distributive property and multiplying the 0.25 by both elements in the parentheses: 0.25 times $60,000 and also 0.25 times B.

That gives you B = $15,000 – 0.25B

Then you want all of the B elements on the same side of the equation, so you add 0.25B to both sides (which eliminates the -0.25B from the right side of the equation):

B + 0.25B = $15,000

1.25B = $15,000

B = $15,000 / 1.25

B = $12,000

Does that help?

AUD 84 (1/9/14-Wiley books/TB + free materials)
FAR 83 (5/21/14-the above + NINJA 10 Pt Combo Lite)
REG 84 (7/9/14-Wiley books/TB + NINJA Audio/FC/Notes)
BEC 76 (10/5/14-Wiley books/TB + NINJA Audio/FC)

Disclaimer: My ninja avatar is not meant to imply that I have any affiliation with this site other than being a forum member. That's a pic of a T-shirt that my daughter gave me for my birthday. 🙂

[Kimboroni]

I think it might be a bit clearer if we think of the bonus as the variable B.

B = 0.25 x ($160,000 – $100,000 – B)

B = 0.25 x ($60,000 – B)

Here, you are using the distributive property and multiplying the 0.25 by both elements in the parentheses: 0.25 times $60,000 and also 0.25 times B.

That gives you B = $15,000 – 0.25B

Then you want all of the B elements on the same side of the equation, so you add 0.25B to both sides (which eliminates the -0.25B from the right side of the equation):

B + 0.25B = $15,000

1.25B = $15,000

B = $15,000 / 1.25

B = $12,000

Does that help?

AUD 84 (1/9/14-Wiley books/TB + free materials)
FAR 83 (5/21/14-the above + NINJA 10 Pt Combo Lite)
REG 84 (7/9/14-Wiley books/TB + NINJA Audio/FC/Notes)
BEC 76 (10/5/14-Wiley books/TB + NINJA Audio/FC)

Disclaimer: My ninja avatar is not meant to imply that I have any affiliation with this site other than being a forum member. That's a pic of a T-shirt that my daughter gave me for my birthday. 🙂

[raven]

Yes. Thank you 🙂

A- pass
F- pass
R- pass
B - August 2014 - pass - YAY!!!!

[raven]

Yes. Thank you 🙂

A- pass
F- pass
R- pass
B - August 2014 - pass - YAY!!!!

[Anonymous]

thank you

[Anonymous]

Oh, how I hate this problem-having taken FAR twice, totally not worth figuring out:) LOL!

[Author]

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