9514 1404 393
Answer:
under
Explanation:
On average, there are 4 1/3 weeks in a month, so Andy's salary is equivalent to ...
(4 1/3 wk/mo)($975/wk) = $4225/mo
The spending guidelines are that no more than 12% should be spent on gifts and entertainment, so Andy's gift budget is ...
12% × $4225/mo = $507/mo
A gift of $250 falls well within Andy's monthly gift budget limit of $507.
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Additional comment
Andy's housing allowance is about 30% of $4225, or $1267.50. His mortgage expense is over his budget amount by $82.50. Even if Andy takes this from his gift budget, he still has a sufficient amount for the birthday gift.