Suppose that you work at the Peacock Blue store for 40 hours over five days at a rate of $10.25/hour. You then quit your job. Deductions are FICA (7.65%), federal withholding (15%), and state withholding (10%). 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? (1 point) Responses $364.50 $364.50 $344.55 $344.55 $230.63 $230.63 $210.68
To calculate your discretionary income for the week, we need to deduct taxes, expenses, and any other necessary deductions from your total earnings.
First, let's calculate your total earnings:
40 hours * $10.25/hour = $410
Next, let's calculate the FICA deduction:
FICA deduction = $410 * 7.65% = $31.41
Now, let's calculate the federal withholding deduction:
Federal withholding deduction = $410 * 15% = $61.50
Next, let's calculate the state withholding deduction:
State withholding deduction = $410 * 10% = $41
Now, let's calculate your total deductions:
Total deductions = FICA deduction + federal withholding deduction + state withholding deduction
Total deductions = $31.41 + $61.50 + $41 = $133.91
Next, let's calculate your total expenses for the week:
Transportation expenses = $5.25/day * 5 days = $26.25
Lunch expenses = $3.85/day * 5 days = $19.25
Black slacks expenses = $19.95
Total expenses = Transportation expenses + Lunch expenses + Black slacks expenses
Total expenses = $26.25 + $19.25 + $19.95 = $65.45
Finally, let's calculate your discretionary income for the week by subtracting your deductions and expenses from your total earnings:
Discretionary income = Total earnings - Total deductions - Total expenses
Discretionary income = $410 - $133.91 - $65.45 = $210.68
Therefore, your discretionary income for the week is $210.68.