Question

Your gross pay is $1,878.96, net income is $1,196.34, and fixed expenses are $1,338.54. What is your discretionary income?
(1 point)
Responses

$540.42
$540.42

$682.62
$682.62

$0
$0

$142.20
$142.20

Answer 1

Discretionary income = net income − fixed expenses = $1,196.34 − $1,338.54 = −$142.20. Because you cannot have negative discretionary income, discretionary income = $0.