Each year, Company X’s local tax burden is computed by charging a set amount of $200 plus an additional 8 percent on all

[BTGmoderatorDC]

Each year, Company X’s local tax burden is computed by charging a set amount of $200 plus an additional 8 percent on all profit made over $10,000. What is the company’s local tax burden this year?

(1) Company X made a profit of $60,000 this year.

(2) Company X’s local tax burden is equal to 7 percent of its profit this year.


OA D

Source: Manhattan Prep