Disposable Income Is Defined As

question 43

Multiple Choice

Disposable income is defined as:

• A)An employee's net pay less living expenses like rent and utilities.
• B)An employee's taxable income less Understand Post-Tax Deductions.
• C)An employee's gross pay less Identify Pre-Tax Deductions.
• D)An employee's pay after legally required deductions have been withheld.

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Definitions:

Utility Rates

Charges imposed by utility companies for the use of services such as electricity, gas, water, and sewer.

Contribution Margin

The amount by which the sale of a product or service exceeds its variable costs, used to cover fixed costs and contribute to net income.

Fixed Costs

Expenses that do not change with the level of production or sales over a relevant period, such as rent, salaries, and insurance.

Break-even Sales

The amount of sales needed to cover all fixed and variable costs, resulting in zero profit.