Earning and purchasing power

Using the information from this unit, determine, in your opinion, the purchasing power and potential standard of living Josiah can have based on his disposable income.

Josiah is a supervisor at McDonalds, and he makes $38,000 gross annually. He is paid monthly. He also receives 4% vacation pay per pay cheque. His essential monthly expenses are as follows:

Item	Cost ($)
Rent	$800
Food	$200
Utilities	$200
Internet	$80
Transportation	$300
Child care	$600

Show your work for the following calculations:

• Vacation pay
• CCP and EI deductions
• Taxable income
• Federal and provincial tax
• Annual net income
• Monthly net income
• Monthly expenses
• Disposable income