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A Due to a projection of a 3% increase in gross revenue for next year, a web development company is planning a round of end-of-year
A Due to a projection of a 3% increase in gross revenue for next year, a web development company is planning a round of end-of-year bonuses for its staff of 21 employees. Two plans for the bonus have been proposed: 1 . Providing each employee with a bonus of 5% of their net payable salary, and 2 . Providing every employee with an identical bonus, consisting of 5% of the average net payable salary across all employees. The salaries of all employees are provided on the given Salary Sheet. The bonuses would be taken out of the profits of the company, after all taxes and expenses (including total salaries) have been accounted for. If the company had a gross revenue of $1.7 million last year, spent $0.81 million on operational costs outside of salaries, and will have a tax rate of 5.3%, which plan for the bonus would result in the smallest impact on company profits? Write final answer in the red box below. However, you will also be graded on the analytical model you create in order to reach your conclusion. You analysis should be able to show the post-bonus profits for the company under either proposal, but not both at the same time. Points Guide 20% the answer given in the red box is accurate 20% analysis accounts for all possible scenarios 20% clarity and efficiency of analytical model 20% appropriate usage of information given in the scenario 20% use of appropriate references
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