Question

Lauryn’s wages were not as much as she had budgeted. How can her budget be modified so there will be a positive actual net income?
A 3-column table with 7 rows is shown. Column 1 is labeled Monthly budget with entries Income with subentry wages; expenses with subentries car, gas, insurance, food, clothes, college savings, recreation; net income. Column 2 is labeled Budgeted amount with entries 1,050 dollars, 250 dollars, 150 dollars, 120 dollars, 300 dollars, 75 dollars, 25 dollars, 130 dollars. Column 3 is labeled actual amount with entries 775 dollars, blank, blank, blank, blank, blank, blank.

a.
Reduce the college savings expense by $50.
b.
Reduce the clothes expense by $75.
c.
Reduce the recreation expense by $25.
d.
Do all of the above.



Please select the best answer from the choices provided


A
B
C
D

Answer 1

D

Explanation: Budgeted expenses = 250+150+120+300+75+25 = 920, so budgeted net income = 1050−920 = 130. With actual wages 775, actual net = 775−920 = −145. The three reductions total 50+75+25 = 150, and −145+150 = +5, which is a positive net income.