Question

Suppose that you work at the Peacock Blue store for 40 hours over five days at a rate of $9.25/hour. You then quit your job. Deductions are FICA (7.65%), federal withholding (12%), and state withholding (8%). Your expenses are transportation at $5.25/day, lunch at $3.85/day, and black slacks required for work at $19.95. How much is your discretionary income for the week?

Answer 1

Answer:

B

B

A

D

Extra:

1. To calculate discretionary money, you

B) Calculate the difference between your net income and fixed expenses

2. Deductions from your pay such as FICA, federal withholding, and state withholding are _____

B) Involuntary and fixed

3. You have the following expenses: clothes—$98.95, utilities—$234.98, rent—$875.34, and groceries—$103.98. Which expenses are discretionary?

A) Clothes

4. Suppose that you work at the Peacock Blue store for 40 hours over five days at a rate of $9.25/hour. You then quit your job. Deductions are FICA (7.65%), federal withholding (12%), and state withholding (8%). Your expenses are transportation at $5.25/day, lunch at $3.85/day, and black slacks required for work at $19.95. How much is your discretionary income for the week?

D) $202.24

Answer 2

Answer:

Discretionary Income for the week = $202.24

Step-by-step explanation:

Hourly pay = $9.25

Total amount earned in 40 hours over 5 days.

40hrs * $8.75 = $370 earned before taxes

Add up all the percentages for the deductions. 

7.65% + 12% + 8% = 27.65% = 27.65/100 = 0.2765

Total deduction =  $370*0.2765 = $102.31

Now, add up all your expenses for those 5 days:

transportation: 5* $5.25 = $26.25

lunch: $3.85 * 5 = $19.25

black slacks: $19.95

Total expenses = $26.25 + $19.25 + 19.95 =  $65.45

Discretionary Income = $370 - $102.31(taxes) - $65.45(expenses) = $202.24

Discretionary Income for the week = $202.24

Hope this will helpful.

Thank you.