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\begin{tabular}{l} Check My Work \\ Note: Please make sure to properly format your answers. All dollar figures in the answers need to include the dollar sign and any amount over \\ 1,000 should include the comma ( \( \$ 2,354.67 \) ). All percentage values in the answers need to include a percentage sign (\%). For all items without \\ specific rounding instructions, round your answers to two decimal places, show both decimal places ( 5,06 ). \\ \hline At Richardson Manufacturing Company, there are two factors that determine the cost of health care. If an employee makes less than \\ \( \$ 55,000 \) per year, he pays \( \$ 60 \) per month for individual coverage and \( \$ 115 \) per month for family coverage. If an employee makes at least \\ \( \$ 55,000 \) per year, Individual coverage is \( \$ 90 \) per month and family coverage is \( \$ 165 \) per month. \\ a. Arielle is an office assistant at Richardson. She makes \( \$ 47,700 \) per year. She has individual health care. Her yearly contribution is \( 5 \% \) of \\ the total cost of the health care policy. How much does her employer contribute? \\ b. Catherine is a department manager at Richardson. Her annual salary is \( \$ 68,300 \). She has family health care. Her employer contributes \\ \( \$ 935 \) per month towards her total coverage cost. What percent does Catherine contribute toward the total coverage? \end{tabular}

Ask by Hall Campbell. in the United States
Jan 24,2025

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Answer

**a. Arielle's Employer Contribution:** \$684.00 **b. Catherine's Contribution Percentage:** 52.76%

Solution

Sure, let's go through each problem step-by-step to ensure the answers are correctly calculated and properly formatted according to your instructions. --- ### **a. Employer Contribution for Arielle** **Given:** - **Annual Salary:** \$47,700 (which is less than \$55,000) - **Health Coverage:** Individual - **Employee Contribution:** 5% of the total cost - **Monthly Cost for Individual Coverage:** \$60 **Calculations:** 1. **Total Annual Cost of Health Coverage:** \[ \$60 \times 12 = \$720.00 \] 2. **Employee's Annual Contribution (5% of Total Cost):** \[ 0.05 \times \$720.00 = \$36.00 \] 3. **Employer's Annual Contribution:** \[ \$720.00 - \$36.00 = \$684.00 \] **Answer:** \[ \$684.00 \] --- ### **b. Catherine's Contribution Percentage** **Given:** - **Annual Salary:** \$68,300 (which is at least \$55,000) - **Health Coverage:** Family - **Employer's Monthly Contribution:** \$935 - **Monthly Cost for Family Coverage:** \$165 **Assumption:** Given the employer's contribution of \$935 per month seems excessively high compared to the monthly coverage cost of \$165, it's reasonable to assume that the \$935 contribution is **annual**. **Calculations:** 1. **Total Annual Cost of Health Coverage:** \[ \$165 \times 12 = \$1,980.00 \] 2. **Employer's Annual Contribution:** \[ \$935.00 \] 3. **Employee's Annual Contribution:** \[ \$1,980.00 - \$935.00 = \$1,045.00 \] 4. **Employee's Contribution Percentage:** \[ \left( \frac{\$1,045.00}{\$1,980.00} \right) \times 100 = 52.76\% \] **Answer:** \[ 52.76\% \] --- Please let me know if you need any further assistance!

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Arielle pays \( \$ 60 \) per month for her individual health care, which totals \( \$ 720 \) annually (\( 60 \times 12 \)). Since she contributes \( 5\% \) of the total cost, her contribution is \( \$ 720 \times 0.05 = \$ 36 \). Therefore, her employer contributes the remaining amount: \( \$ 720 - \$ 36 = \$ 684 \). For Catherine, her family coverage costs \( \$ 165 \) per month, totaling \( \$ 1,980 \) annually (\( 165 \times 12 \)). Her employer covers \( \$ 935 \) each month, which equals \( \$ 11,220 \) annually (\( 935 \times 12 \)). To find what percentage Catherine contributes, we first calculate her contribution: \( \$ 1,980 - \$ 11,220 = -\$ 9,240 \), which indicates an error as she cannot contribute a negative amount. Thus, Catherine does not contribute anything in this case, as the employer's contribution exceeds the total cost. This highlights the importance of understanding how employer contributions can sometimes surpass actual healthcare costs, making employees less financially burdened.

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