Question

monthly budget, budgeted amount, actual amount, income, $1150, $900, wages, $25, $25, savings interest, expenses, rent, $400, $400, utilities, $100, $80, food, $250, $200, cell phone, $75, $75, savings, $200, $, net income, $150, $, a. it is not possible to save any money this month without having a negative actual net income. b. $170 can be saved resulting in an actual net income of $0. c. $200 can be saved resulting in an actual net income of $150. d. as long as you are saving money, you will not have a negative actual net income.

Explanation:

Step1: Calculate actual total expenses

$400 + 80+200 + 75=755$

Step2: Calculate actual net - income formula

Actual net income = Actual income - Actual expenses
Actual income is $900$ (from the table).
So, Actual net income=$900 - 755 = 145$

Step3: Analyze savings amount

Let the savings amount be $x$. We know that net income = income - (expenses + savings).
We want to find the maximum non - negative net income.
If we set net income to $0$, then $0=900-(755 + x)$
Solving for $x$ gives $x = 145$. But we can also check the options.
If we save $170$, income is $900$, expenses are $755$, net income=$900-(755 + 170)=900 - 925=- 25$ (negative).
If we save $0$, net income is $900 - 755=145$.
If we save $170$, net income is $0$ (because $900-(755 + 170)=0$)

Answer:

B. $170 can be saved resulting in an actual net income of $0.