wages $1150 $900 savings interest $25 $25 expenses rent $400 $400 utilities $100 $80 food $250 $200 cell…
wages $1150 $900 savings interest $25 $25 expenses rent $400 $400 utilities $100 $80 food $250 $200 cell phone $75 $75 savings for car $200 $200 net income $30 what is the actual net income for the month? what, if any, changes would have improved the budget for the month? a. the actual net income for the month is -$30. no changes to the budget are necessary. b. the actual net income for the month is $30. no changes to the budget are necessary. c. the actual net income for the month is $30. more money could have been spent on food. d. the actual net income for the month is -$30. less money could have been spent on food.
Answer
Explanation:
Step1: Calculate total income
Total income = Wages + Savings Interest. For the first - set of data: $1150 + 25=1175$. For the second - set of data: $900 + 25 = 925$.
Step2: Calculate total expenses
Total expenses = Rent+Utilities + Food+Cell Phone+Savings for Car. For the first - set of data: $400 + 100+250 + 75+200=1025$. For the second - set of data: $400 + 80+200 + 75+200 = 955$.
Step3: Calculate net income
Net income = Total income - Total expenses. For the first - set of data: $1175-1025 = 150$. For the second - set of data: $925 - 955=-30$. The overall net income considering both sets (assuming they are part of the same month's analysis) is $150+( - 30)=30$.
Step4: Analyze budget improvement
Since the net income is positive but relatively small, and food is a flexible expense, less money could have been spent on food to increase the net income.
Answer:
d. The actual net income for the month is -$30. Less money could have been spent on food.