Final answer:
Mary Ann's monthly expenses are greater than her after-tax income, so she is not able to save 10% of her income.
Step-by-step explanation:
To determine if Mary Ann would be able to save 10% of her after-tax monthly income, we need to calculate her monthly expenses and compare them to 10% of her after-tax income. Here is the budget table:
ExpenseAmountRent$790Cell Phone$75Utilities$45Cable TV and Internet$65Groceries$450Entertainment$250Car Payment$350Gasoline$120
Adding up the expenses, Mary Ann's total monthly expenses amount to $2,145. Therefore, she is not able to save 10% of her after-tax income because her expenses are greater than her income. Budget Analysis and Decision Making
When analyzing scenarios such as Anne's art supply store expenses or Mary Ann's monthly budget, it's crucial to calculate the total expenses and compare them to the income. Mary Ann aims to save 10% of her monthly income of $2,589.10 which equals to $258.91. Let's create a budget table for Mary Ann's expenses:
Rent: $790
Cell phone: $75
Utilities: $45
Cable TV and Internet: $65
Groceries: $450
Entertainment: $250
Car payment: $350
Gasoline: $120
Adding up these expenses gives us a total of $2,145. Therefore, Mary Ann is left with $444.10 after expenses, which allows her to save more than the targeted 10% of her income. For the Yoga Center, we examine three scenarios with different levels of revenues and expenses to decide whether to continue the business. The last given scenario presents an accounting profit of $115,000 for Eryn's potential business, not including her opportunity cost of $125,000 salary from her current job.