Question

predict how much money can be saved without having a negative actual net income.
monthly budget

	budgeted amount	actual amount
expenses - rent	$300	$300
expenses - utilities	$100	$100
expenses - food	$175	$200
expenses - cell phone	$75	$75
expenses - savings	$300	$
net income	$75	$

a. it is not possible to save any money this month without having a negative actual net income.
b. $350 can be saved resulting in an actual net income of $0.
c. $200 can be saved resulting in an actual net income of $75.
d. because there is a $75 budgeted net income, that $75 can be put towards savings.

Explanation:

Step1: Calculate total actual expenses

Add up all actual expense amounts:
$\$300 + \$100 + \$200 + \$75 = \$675$

Step2: Calculate max possible savings

Subtract total actual expenses from actual income:
$\$675 - \$675 = \$0$
Then add budgeted net income (available for savings without negative net income):
$\$0 + \$75 = \$75$

Answer:

d. Because there is a $75 budgeted net income, that $75 can be put towards savings.