Question

Brenda earns $1,700 per month after taxes. She is working on her budget and has the first three categories finished.

Housing $612
Food $238
Transportation $370

What is the problem with this budget?

A. She is budgeting too much for transportation.
B. She has used the highest recommended percentages for the three categories.
C.She has allotted more than 36% of her income for housing.
D. She is budgeting too little for transportation.

Answer 1

A. She is budgeting too much for transportation.

The MAXIMUM she should be budgeting on transportation is $340, so she went over.

Answer 2

C.She ha allotted more than 36% of her income for housing.