Using More Than 20 Percent of One's Take-Home Income to Pay

question 82

True/False

Using more than 20 percent of one's take-home income to pay off consumer debt is one of the signs that one may be headed for serious credit problems.

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Definitions:

Net Operating Income

A measure of a company's profitability from its core business operations, excluding expenses and revenues from investments and financing.

Variable Costs

Costs that vary directly with the level of production or output, such as materials and labor.

Productive Capacity

The maximum output a system can produce in a specific period under normal working conditions.

Milling Machine

A machine tool used to machine solid materials by removing material in the form of chips using a rotating cutting tool.