a. Mr. Garcia works 160 hours per month, so his monthly income would be $19.97 x 160 = $3,195.20.
Mrs. Garcia works 24 hours per week, so her monthly income would be $19.97 x 24 x 4 = $1,919.36.
Therefore, the Garcias' total monthly income would be $3,195.20 + $1,919.36 = $5,114.56.
The Garcias' total expenses are $4,295. Therefore, their income exceeds their expenses by $5,114.56 - $4,295 = $819.56.
b. The difference between the Garcias' total monthly income and their total monthly expenses is $819.56.
c. The Garcias would indeed earn a high enough hourly wage as a family in the Charleston area to maintain a sustainable lifestyle. The difference in wages means that the Garcias would have a surplus income of $819.56 after meeting all their expenses, allowing them to save or spend on additional expenses if desired.
Assuming there are four weeks in a month, calculate the average hourly wage needed for the Garcias to meet their budget. Mr. Garcia works 160 hours per month. Mrs. Garcia works 24 hours per week.
Garcias' Monthly Budget
Monthly Fixed Expenditures
Item Budget
mortgage payment $1,472
car payment $406
car insurance $68
savings $1,220
taxes $400
Total Fixed Expenses $3,566
Monthly Variable Expenditures
Item Budget
groceries $489
gas $120
movies $53
circus $22
restaurant $45
Total Variable Expenses $729
Total Expenses $4,295
6.
Using the provided situation, choose the best answer.
The Garcias want to move to the Charleston, NC, area. As of 2016, the average hourly wage in the Charleston area was $19.97.
a. Will the Garcias earn a high enough hourly wage as a family in the Charleston area to maintain a sustainable lifestyle?
b. Calculate the difference between the two wages.
c. State what the result in Part A means. What impact does the difference in wages have on the Garcia family’s ability to maintain a sustainable lifestyle in Charleston?
1 answer