Quarterly earnings calculator
Question
Suppose a company is taxed 20% if earnings for a given quarter are > = $3M USD.
If earnings land < $3M USD for the quarter, the company is taxed at a lower rate of 15%.
Write a function using Python to calculate both the pre-tax and post-tax earnings for a given company, with the ability to feed in the # of widgets sold as well as the average price of the widget as inputs (# of widgets sold * avg. price of widgets = total earnings in this case).
For example, if the company sells 20,000 widgets at an average price of $220 USD then your function should return:
- Pre-tax earnings were 20,000*220 = 4.4M for the quarter.
- Post-tax earnings were 3.52M for the quarter [4.4M *.8 (since we fall in higher 20 percent tax bracket here)]