Question

Tamari has a monthly income of $4,250 and she wants to determine her monthly net income. She calculates that her fixed expenses are $1,955 and her variable expenses are 28% of her monthly income. How much is Tamari’s monthly net income?
a.
$1,105
b.
$2,295
c.
$1,190
d.
$3,060

Answer 1

Variable expenses = 28% of \$4,250 = 0.28 × 4,250 = \$1,190.
Total expenses = \$1,955 + \$1,190 = \$3,145.
Net income = \$4,250 − \$3,145 = \$1,105.

Answer: a. $1,105