Answer the following question based on the following information (a month has 4 weeks).

Jeromes income and expenses are the following:

- Rent: $2500/mo.

• Weekly wages : full-time @$40/hrs.; part-time @30hrs@$25/hr.
• Business property income: $1750/mo.
• Social Security Taxes: $400/mo.
• Food: $3600/yr.
• Clothing: $150/wk
• Income taxes: 15% of monthly wages
• Property taxes: 10% of annual rental revenue
• Utilities: $99/mo.

[A] What is Jeromes discretionary income?

[B] Jerome wants to place new furniture in his business property. He believes that he can purchase the furniture at the end of this year because:

• Since January of this year Jerome has been saving approximately

(round to nearest dollar) of his discretionary income each month

• Beginning June 1, 2020 Jeromes friend, Marvin, will begin living with Jerome. He will pay Jerome exactly 1/5 of his present rental cost each month. Jerome will add this amount to the discretionary income he has been saving monthly.

By the end of the year will Jerome be able to purchase the new furniture if the furniture will cost $4000-$5000? (Show your calculations)

II. Determine if the following statements are True (T) or False (F). Place a T or an F on the blank line next to the statement. If the statement is False provide a correct statement:

1) More than likely one uses disposable income to purchase a luxury item_______

2) An aesthetic modification appeals to one of our senses________

3) A patent protects original writings______

4) A fad product only goes through 2 cycles________

5) An example of direct selling is Avon cosmetics_____

6) There is no profit until after you break even_________

7) A business plan is a component of its marketing plan_____

8) Process material is a business product classification______

9) Deletion of a product depends on whether there is another to take its place_____

10) Pricing goods is within a warehouse function_______

III. In this current year Company has produced 300 widgets. Over the next 2 years production will increase by 25% more of the previous year. With each increase in production cost/unit will decrease 10% less of the previous year. Companys present profit margin is 30%. Present cost/unit is $24. If price remains constant how many units will have to be sold in Year 3 of production to breakeven?

IV. Match the following words or phrases with its appropriate description below. Place the letter on the blank line next to the correct numbered match: