Question

Suppose Florence has been offered a new assignment at work which comes with a $400 increase in her weekly wage. The catch is that the assignment would require her to work a bit longer so that she would need to pay for extended care for her child in the amount of $300 per eek Further, suppose that Florence's federal marginal tax rate is 22%. She lives in Florida so she does not have to pay any state income tax. But she would also need to pay 6.2% Social Security tax and 1 45% Medicare tax on those additional earnings. Use at least 3 decimal points in your answer and all intermediate calculations Given this information: Florence's overall marginal tax rate (the sum of the above tax rates) is If she accepts this new assignment she would have to pay $ Then her take-home after-tax additional weakly eamings would be S From a purely financial standpoint, should she accept the new work assignment?(In answering this question you can assume that she is unable to use any tax breaks/deductions for the additional childcare expenditures) in taxes on her additional weekly earnings. Check