Comprehensionhard · Past Paper

The company announced a 10% raise for all employees, but simultaneously increased health insurance premiums by 15%. What can be inferred about the employees' take-home pay?

AIt will significantly increase.
BIt will likely stay the same or decrease.
CEmployees will no longer need insurance.
DThe company is going bankrupt.

✓ Correct Answer: BIt will likely stay the same or decrease.

If costs (premiums) rise more than income (raise), the net financial benefit is neutralized or negative.

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