The Total Amount of Money That Robert Earns in a Year

question 55

Multiple Choice

The total amount of money that Robert earns in a year is $100,000.He pays income tax $18,000 and other taxes of $6,000.He spends $15,000 to buy necessities. What is Robert's discretionary income?

• A)$100,000
• B)$82,000
• C)$76,000
• D)$61,000

---

Definitions:

Labour Costs

The total expenditures for hiring employees, including wages, benefits, taxes, and any other costs associated with employing labor.

Overhead Costs

Indirect expenses related to the operation of a business, such as rent, utilities, and administrative costs.

Variable Costs

Variable Costs are expenses that change in proportion to the activity of a business.

Fixed Costs

Costs that do not change with the volume of production or sales, such as rent, salaries, and insurance premiums.