{"id":202970,"date":"2025-03-18T10:19:17","date_gmt":"2025-03-18T10:19:17","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=202970"},"modified":"2025-03-18T10:19:19","modified_gmt":"2025-03-18T10:19:19","slug":"at-richardson-manufacturing-company-there-are-two-factors-that-determine-the-cost-of-health-care","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/03\/18\/at-richardson-manufacturing-company-there-are-two-factors-that-determine-the-cost-of-health-care\/","title":{"rendered":"At Richardson Manufacturing Company, there are two factors that determine the cost of health care"},"content":{"rendered":"\n<p>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 $40 per month for individual coverage and $85 per month for family coverage. If an employee makes at least $55,000 per year, individual coverage is $70 per month and family coverage is $165 per month.<br>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. How much does her employer contribute?<\/p>\n\n\n\n<p>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?<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-ast-global-color-6-color\"><strong>The correct answer and explanation is :<\/strong><\/mark><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Part (a)<\/h3>\n\n\n\n<p>Arielle\u2019s annual salary is $47,700. Since her salary is less than $55,000, the cost of her individual health care is $40 per month.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Cost of individual coverage per month<\/strong>: $40<\/li>\n\n\n\n<li><strong>Yearly cost of individual coverage<\/strong>: $40 \u00d7 12 = $480<\/li>\n<\/ul>\n\n\n\n<p>Arielle contributes 5% of the total cost of her health care. This means:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Arielle&#8217;s contribution<\/strong>: 5% of $480 = 0.05 \u00d7 $480 = $24<\/li>\n<\/ul>\n\n\n\n<p>To find out how much her employer contributes, we subtract Arielle\u2019s contribution from the total yearly cost:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Employer\u2019s contribution<\/strong>: $480 &#8211; $24 = $456<\/li>\n<\/ul>\n\n\n\n<p>Thus, <strong>Arielle&#8217;s employer contributes $456<\/strong> toward her health care costs annually.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Part (b)<\/h3>\n\n\n\n<p>Catherine\u2019s annual salary is $68,300. Since her salary is more than $55,000, the cost of her family health care is $165 per month.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Cost of family coverage per month<\/strong>: $165<\/li>\n\n\n\n<li><strong>Yearly cost of family coverage<\/strong>: $165 \u00d7 12 = $1,980<\/li>\n<\/ul>\n\n\n\n<p>Catherine\u2019s employer contributes $935 per month toward the total cost of her coverage.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Employer\u2019s yearly contribution<\/strong>: $935 \u00d7 12 = $11,220<\/li>\n<\/ul>\n\n\n\n<p>To determine Catherine\u2019s contribution, we subtract her employer\u2019s yearly contribution from the total yearly cost:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Catherine\u2019s yearly contribution<\/strong>: $1,980 &#8211; $11,220 = $1,980 &#8211; $11,220 = $1045<\/li>\n<\/ul>\n\n\n\n<p>To find the percentage that Catherine contributes, we divide her yearly contribution by the total yearly cost and multiply by 100:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Percentage contribution by Catherine<\/strong>:<br>[<br>\\frac{1,980- year basis for Catherine as health plan year is 190<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>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 $40 per month for individual coverage and $85 per month for family coverage. If an employee makes at least $55,000 per year, individual coverage is $70 per month and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-202970","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/202970","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=202970"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/202970\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=202970"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=202970"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=202970"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}