Examine the following budget:Monthly BudgetBudgeted AmountActual AmountIncome Wages$1000$850Expenses Car - gas, insurance Food & Personal Items Cell Phone College Savings Recreation Clothes$300$200$75$200$75$85$300$220$75$200$80$60Net Income$65 What is the actual net income for the month? What, if any, changes could have been made to the actual amounts this month to keep the actual net income at a positive value?
Answer
A
The actual net income for the month is -$85. Less money could have been spent on food, recreation and clothes.
B
The actual net income for the month is $85. No changes necessary.
C
The actual net income for the month is -$85. No changes necessary.
D
The actual net income for the month is $85. Less money could have been spent on food, recreation and clothes.
Explanation
The actual expenses total $935: $300 + $220 + $75 + $200 + $80 + $60. Subtracting that from the actual income of $850 gives a net income of −$85. Spending less on food, recreation, or clothes could reduce expenses enough to make net income positive, so choice A is correct.
AI-written and checked against the verified answer.