Answer:
option D
Explanation:
given,
estimate medical cost are expected = $7,500
The retiree is expected to pay 30% of the cost.
Medicare is expected to pay 50% of the cost.
company estimated net cost benefits = ?
retiree expected pay = 30 % of $7,500
= 0.3 x $7,500
= $2,250
Medicare expected pay = 50% of $7,500
= 0.5 x $7,500
= $3,750
company's net cost benefits = $7,500 - ($2,250+$3,750)
= $7,500 - $6000
= $1,500
hence, the correct answer is option D
