Part 1
Total income per month = $3,500+$368.49 = $3,868.49
Total deductions = 7.65%+10.75%+8.35% = 26.75% = 0.2675
Net income = Total income - Deductions = Total deductions (1-0.2675) = $3,868.49 (1-0.2675) = $2,833.67
Part 2
Fixed expenses = $1,035.65 which is 36% of realized income.
Then, if realized income is 100%;
$1,035.65 ------------------ 36%
$ Realized income ----- 100%
Therefore,
Realized income = 1,035.65*100/36 = $2,876.81
D- this should be correct because it explains the possible way of them matching even though DEF is bigger
