Question

Manuel Acala is a marketing analyst, but made only $28,000 last year because he was employed only part of the year. He paid $5,000 in taxes, and spent another $10,000 for food, housing, a car, and other "necessities." Manuel's discretionary income was:

Answer 1

$13000

Step-by-step explanation:

There are two types of incomes; disposable income that is the income after paying income tax, and discretionary income that is the income after paying income taxes and necessities. Overall, the Manuel Acala made $28000; he paid $5000 in taxes.

Disposable income= $28000-$5000 = $23000

He spent $10000 on food

Discretionary income = $23000-$10000= $13000