Question

Examine the following budget: Monthly Budget Budgeted Amount Actual Amount Income Wages $1000 $850 Expenses Car - gas, insurance Food & Personal Items Cell Phone College Savings Recreation Clothes $300 $200 $75 $200 $75 $85 $300 $220 $75 $200 $80 $60 Net 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 1

Option A: The actual net income for the month is -$85. Less money could have been spent on food, recreation and clothes.

Step-by-step explanation:

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Answer 2

What is the actual net income for the month?

-$ 115

What, if any, changes could have been made to the actual amounts this month to keep the actual net income at a positive value?

To achieve a positive result of $135, it's necessary to reduce two items that are over the budget, insurance Food & Personal Items and Recreation , if it's possible to adecuate these values to the forecasted budget then it's possible to have positive results.

Step-by-step explanation:

Result for the Month

Income statement BDGT REAL

Income Wages $ 1.000 $ 850

Expenses Car - gas -$ 300 -$ 200

insurance Food & Personal Items -$ 75 -$ 200

Cell Phone -$ 75 -$ 85

College Savings -$ 300 -$ 220

Recreation -$ 75 -$ 200

Clothes -$ 80 -$ 60

Net Income $ 95 -$ 115

Modified Result for the Month.

Income statement BDGT REAL

Income Wages $ 1.000 $ 850

Expenses Car - gas -$ 300 -$ 200

insurance Food & Personal Items -$ 75 -$ 75

Cell Phone -$ 75 -$ 85

College Savings -$ 300 -$ 220

Recreation -$ 75 -$ 75

Clothes -$ 80 -$ 60

EBIT $ 95 $ 135