Question

Maddox wants to go back to college full-time. His current employer has agreed to reduce his hours from 40 hours to 25 hours while retaining his current rate of pay. Maddox has lived in his own apartment for 1 year and really likes his independence. Which of the following budgets below would fit his new situation?
Monthly Budget
Current Amount
Income
Wages
$1760
Expenses -
Rent
Utilities
Food
Gym Membership
Entertainment
Savings
Clothes
Cell Phone
Car Expenses
$350
$100
$220
$45
$225
$200
$175
$100
$300
Net Income
$45

Monthly Budget
Modified Budget A
Modified Budget B
Modified Budget C
Modified Budget D
Income
Wages
$1100
$1600
$1600
$1100
Expenses -
Rent
Utilities
Food
Gym Membership
Entertainment
Savings
Clothes
Cell Phone
Car Expenses
$350
$100
$120
$0
$20
$50
$30
$100
$300
$350
$100
$120
$0
$20
$50
$30
$100
$300
$350
$100
$220
$45
$225
$200
$175
$100
$300
$350
$100
$220
$45
$220
$150
$130
$100
$300
Net Income
$30
$530
-$115
-$515

a.
Modified Budget A
b.
Modified Budget B
c.
Modified Budget C
d.
Modified Budget D



Please select the best answer from the choices provided


A
B
C
D

Answer 1

To determine which modified budget fits Maddox's new situation after his hours are reduced and his income drops to $1,100, we need to calculate his expenses and see which budget allows for a balance that does not result in a deficit.

Maddox's current monthly expenses from the original budget are as follows:

- Rent: $350
- Utilities: $100
- Food: $220
- Gym Membership: $45
- Entertainment: $225
- Savings: $200
- Clothes: $175
- Cell Phone: $100
- Car Expenses: $300

Total expenses = $350 + $100 + $220 + $45 + $225 + $200 + $175 + $100 + $300 = $1,615.

With the reduced wages to $1,100 from $1,760 due to a reduction in hours, we have:

Net Income = Income - Expenses

To find a working budget, we can analyze the modified budgets:

- **Modified Budget A:**
- Income: $1,100
- Expenses:
- Rent: $350
- Utilities: $100
- Food: $120
- Gym Membership: $0
- Entertainment: $20
- Savings: $50
- Clothes: $30
- Cell Phone: $100
- Car Expenses: $300
- Total Expenses: $1,100
- Net Income: $0

- **Modified Budget B:**
- Income: $1,600
- Expenses (same as WyBudget A for rent, utilities, etc.; but misaligned to income):
- Net Income: $530 (not suitable since wages are not met)

- **Modified Budget C:**
- Income: $1,600
- Expenses (similar entries; however already evaluated):
- Net Income: -$115 (not suitable)

- **Modified Budget D:**
- Income: $1,100
- Expenses:
- Rent: $350
- Utilities: $100
- Food: $220
- Gym Membership: $45
- Entertainment: $225
- Savings: $200
- Clothes: $175
- Cell Phone: $100
- Car Expenses: $300
- Total Expenses: $1,615
- Net Income: -$515 (not sustainable)

The only modified budget that fits Maddox's new income levels and allows for a balanced situation (where expenses do not exceed income) is **Modified Budget A**, which balances his income and expenses, providing him with independence without overspending.

Therefore, the best answer is:
**A (Modified Budget A)**.