Question

The Brandon household has monthly income of $5,630 on which to base their budget. They plan to save 10% and spend 32% on fixed expenses and 56% on variable expenses. What amount do they plan to set aside for each budget section in Savings, fixed expenses, and variable expenses?

Answer 1

The Brandon household plans to save $563, spend $1,801.60 on fixed expenses, and spend $3,156.80 on variable expenses.

Step-by-step explanation:

To determine the amount allocated to each budget section, we need to calculate the dollar value for each percentage.

For savings, the Brandon household plans to save 10% of their monthly income. This would be calculated by multiplying the monthly income by 0.10:

Savings = $5,630 x 0.10 = $563

For fixed expenses, the Brandon household plans to spend 32% of their monthly income. This would be calculated by multiplying the monthly income by 0.32:

Fixed expenses = $5,630 x 0.32 = $1,801.60

Finally, for variable expenses, the Brandon household plans to spend 56% of their monthly income. This would be calculated by multiplying the monthly income by 0.56:

Variable expenses = $5,630 x 0.56 = $3,156.80