The Manager of Yates Company Is Given a Bonus Based

Multiple Choice

The manager of Yates Company is given a bonus based on income before income taxes.Net income, after taxes, is $8,400 for FIFO and $7,560 for average-cost.The tax rate is 30%.The bonus rate is 20%.How much higher is the manager's bonus if FIFO is adopted instead of average-cost?

A) $300
B) $450
C) $240
D) $840