Dear Tutor,

Could you please help me with the calculations below? Somehow I cannot get the correct answers.

I ended up with a result of 34.000 but the correct answer should be 40.000.

Thanks a lot in advance!

Mercu AG pays out a monthly net salary of 21,000 to its production manager. The manager's average tax rate is 30%. Total social security contributions for the manager amount to 20,000 of which the company bears 50%. Please assume that these contributions are tax exempt, such that the tax rate is only applied to the managers salary.

Please calculate the labor cost to the company based on these indications.