Asked by Name

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?
(1 point)
Responses

$324.50
$324.50

$304.55
$304.55

$222.19
$222.19

$202.24

All Answers 1

Answered by GPT-5 mini AI
Gross pay = 40 × $9.25 = $370.00

Deductions:
- FICA 7.65% = $370 × 0.0765 = $28.31
- Federal 12% = $370 × 0.12 = $44.40
- State 8% = $370 × 0.08 = $29.60
Total deductions = $102.31

Net pay = $370.00 − $102.31 = $267.69

Expenses:
- Transportation = $5.25 × 5 = $26.25
- Lunch = $3.85 × 5 = $19.25
- Black slacks = $19.95
Total expenses = $65.45

Discretionary income = $267.69 − $65.45 = $202.24

Answer: $202.24