Problema Solution
A health information consultant charges $100 per hour and works the equivalent of 200 billable 8 hour days per year. Taxes,insurance,travel,and other expenses consume about 70 percent of the consultant's gross revenue.
a.What is the consultant's gross annual revenue(the total amount she receives from her clients before taxes and other expenses)?
b.What is the consultant's net annual income(her take home pay after taxes and other expenses)?
Answer provided by our tutors
a.What is the consultant's gross annual revenue(the total amount she receives from her clients before taxes and other expenses)?
200*8*100 = $160,000
b.What is the consultant's net annual income(her take home pay after taxes and other expenses)?
Taxes,insurance,travel,and other expenses consume about 70 percent of the consultant's gross revenue thus the net annual income is 30% of the consultant's gross revenue:
0.30*160000 = $48,000