Answer:
B
B
A
D
Extra:
1. To calculate discretionary money, you
B) <em>Calculate the difference between your net income and fixed expenses</em>
2. Deductions from your pay such as FICA, federal withholding, and state withholding are _____
B)<em> Involuntary and fixed</em>
3. You have the following expenses: clothes—$98.95, utilities—$234.98, rent—$875.34, and groceries—$103.98. Which expenses are discretionary?
A) <em>Clothes</em>
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) <em>$202.24</em>
