Question

monthly budget, budgeted amount, actual amount, income, wages: $1250, $1050, expenses, rent: $450, utilities: $150, food: $220, clothes: $200, cell phone: $75, net income: $155. a. this budget can be modified by increasing the amount spent on food and utilities and decreasing the amount spent on clothes and rent, thereby maintaining a positive actual net income. b. this budget can be modified by reducing the amount spent on rent and utilities, thereby reducing overall expenses to have the maximum amount of money for all other expenses. c. this budget can be modified by reducing the amount spent on food and clothes, thereby reducing overall expenses to have the maximum amount of money for fixed expenses and maintaining a positive actual net income.

Explanation:

Rent is often a fixed - expense and reducing it may not be practical. Increasing food and utilities while decreasing clothes and rent may not be a balanced approach. Reducing food and clothes expenses helps in cutting variable expenses, which can free up money for fixed expenses and maintain positive net income.

Answer:

c. This budget can be modified by reducing the amount spent on food and clothes, thereby reducing overall expenses to have the maximum amount of money for fixed expenses and maintaining a positive actual net income.