The last semimonthly payroll of Capital Construction was \( \$ 77,763 \) of gross wages for 49 employees. The company pays \( 4.9 \% \) of payroll for vacations and sick leave and \( \$ 62.19 \) per employee for health insurance. What percent of payroll is the total cost of fringe benefits? (Round your answer to the nearest tenth of a percent.) Select one: O. a. \( 3.9 \% \) ob. \( 4.9 \% \) c. \( 8.8 \% \)

To find the total cost of fringe benefits and determine what percent of payroll that represents, we first calculate the costs associated with vacation/sick leave and health insurance. 1. **Vacation and Sick Leave**: This is \( 4.9\% \) of the gross wages. \[ \text{Vacation/Sick Leave Cost} = 0.049 \times 77,763 = 3,813.487 \] 2. **Health Insurance**: This is calculated as \( \$ 62.19 \) per employee for 49 employees. \[ \text{Health Insurance Cost} = 62.19 \times 49 = 3,045.31 \] 3. **Total Cost of Fringe Benefits**: \[ \text{Total Fringe Benefits} = 3,813.487 + 3,045.31 = 6,858.797 \] 4. **Percentage of Payroll**: \[ \text{Percentage of Total Fringe Benefits} = \left( \frac{6,858.797}{77,763} \right) \times 100 \approx 8.8\% \] So, rounding to the nearest tenth of a percent, the answer is \( 8.8\% \). Therefore, the correct option is **c. \( 8.8\% \)**.