The Director of the Art Department, Mr. Alexander Agafonov, wants to hire new office staff.  His boss tells him that to do so he must find in his budget not only the base salary for this position but an additional 30% for “fringe benefits”.  Alex explodes:  “How in the world can there be 30% in fringe benefits?”  Write a memo to Alex explaining the costs that probably make up these fringe benefits.

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