Suppose Workers at a Firm Are Willing to Pay (In

Multiple Choice

Suppose workers at a firm are willing to pay (in foregone after-tax wages ) $1200 a year in order to get a fringe benefit.The worker's tax bracket is 40% (so that for every $1000 a firm pays a worker,they get $600 in after-tax take home pay) .If a firm gives the worker the fringe benefit and workers reduce their after-tax wage by $1200,how much is wage paid by the firm being reduced by?

A) $2000
B) $3000
C) $1200
D) $720