Question

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

Answer 1

Utilities and groceries

Answer 2

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