Magnum Cash&Carry is a chain of supermarkets. The following is a summary of the company’s

annual payroll – related costs.
Wages and salaries expense (of which $4,400,000 was withheld from employees’ pay
and transmitted to the tax authorities)								14 600 000
Payroll taxes (other)								1 060 000
Workers’ compensation premiums								500
Group health insurance premium								1 450 000
Contributions to employees’ pension plan								900

Required:

1.Compute Magnum’s total payroll – related costs for the year.

2.Compute net amount of cash actually paid to employees (their take-home pay).

3.Express total payroll – related costs as a percentage of

(a) total wages and salaries expense

(b) employees take-home pay

Round computations to nearest 1 percent.