Question

Each month, Michael budgets $1200 for fixed expenses, $550 for living expenses, and $100 for annual expenses. His biweekly net income is $864. Which statement best describes his monthly budget? It shows a surplus of $22. It shows a deficit of $22. It shows a surplus of $122. It is balanced.

Answer 1

It shows a surplus of $22.

Explanation:

Just took the test lol

Answer 2

Answer: It shows a deficit of $22.

Explanation:

His biweekly net income is $864. This means that his income in two weeks is $864. There are 4 weeks in a month. Therefore, his monthly income is 2×864 = $1728

Each month, Michael budgets $1200 for fixed expenses and $550 for living expenses. This means that his total monthly expenses will be the sum of his fixed expenses and living expenses. Therefore

Monthly expenses = 1200 + 550 = $1750. This is lower than his monthly income by a deficit of

1728 - 1750 = - $22