What Is The Prime Reason That Jenny's Discretionary (2024)

FAQs

What is the primary reason that Jenny's discretionary income? ›

What is the prime reason that Jenny's discretionary income is more volatile than her salary? Answer : Her mortgage payments and necessities are fixed. 68. A luxury cell phone maker has a high fixed-cost base and a lot of debt.

Considering the factors above, we can conclude that the correct answer is a. Her cost of living is affected by high inflation in the neighborhood. Discretionary income is the remaining amount after deducting taxes, mandatory contributions, and other necessary costs including mortgage.

Expert-Verified Answer

is equal to the change in salary because the fixed costs remain constant. Therefore, as Jenny's salary increases, her discretionary income increases by the same amount, assuming that the fixed costs do not change.

Step 2: Statement 2

When you buy an equity, the most you can lose is 100% and your potential gain is unlimited. True.

Discretionary income is the amount of money you have left after paying for necessary expenses, like taxes, housing and food. You use discretionary income for "extra" things, like entertainment, savings and investments.

Disposable income is the amount of income left after taxes and other mandatory charges are deducted. Discretionary income is the amount of net income an individual has to spend after all necessary expenses are paid.

When individuals and households spend more of their discretionary income on goods and services, vacations, luxury items, and other nonessential items, money is funneled towards businesses that provide those goods and services.

Not only are Baby Boomers the wealthiest generation, holding 70% of the disposable income in the U.S. and spending over $548 billion a year, but they also they spend more than any other generation, across all categories.

The amount of net income a household or individual has available to them to invest, save, or spend after income taxes. When you receive a paycheck, disposable income is the net amount you receive in your check. Disposable income minus all necessary payments equals discretionary income.

Discretionary income is money left over after a person pays their taxes and essential goods and services like housing and food. Nonessential items like vacations and luxury goods are usually paid for with funds from discretionary income. Disposable income and discretionary income are two different things.

How much of salary should be discretionary? ›

50% of your net income should go towards living expenses and essentials (Needs), 20% of your net income should go towards debt reduction and savings (Debt Reduction and Savings), and 30% of your net income should go towards discretionary spending (Wants).

The basics of discretionary income

Discretionary income is the income you're left with after taxes and the cost of your basic needs — food, clothing, and housing — are considered. Anything left over is considered discretionary income for any additional expenses.

The term “equity” refers to fairness and justice and is distinguished from equality: Whereas equality means providing the same to all, equity means recognizing that we do not all start from the same place and must acknowledge and make adjustments to imbalances.

Answer and Explanation:

A) It shows a company's stock issuances and dividends paid to shareholders is true of the statement of stockholders' equity.

Brand equity means a brand has customer loyalty. Brand equity can provide a competitive advantage. All of the above/below statements about brand equity are true. Brand equity refers to the brand's value to an organization.

Discretionary income is the amount left from a person's earnings after paying taxes and paying for personal needs such as food and shelter. This is usually for investing, saving, and/or spending on leisurely or nonessential things such as luxury items and vacations.

Discretionary income is the amount of money left for an individual to spend or save after paying taxes and for personal needs, such as food, lodging, and clothes. Discretionary income includes money spent on luxury goods, holidays, and non-essential goods and services.

Recent Trends – Real Household Discretionary Income

IBISWorld forecasts real household discretionary income to tumble by 1.0% in 2023-24 to $536.2 billion. This expected drop follows a sharp downturn in household discretionary income in 2022-23 in response to inflationary pressures and rising interest rates.