Question

Jim earns $1,600 per month after taxes. He is working on his budget and has the first three categories finished. Housing $576, Food $272, Transportation $320. Why will he have a problem with the rest of his budget?

A) Overspending
B) Insufficient income
C) Unplanned expenses
D) Not enough information provided

Answer 1

Jim will have a problem with the rest of his budget due to insufficient income.

Step-by-step explanation:

Jim is earning $1,600 per month after taxes. After allocating $576 for housing, $272 for food, and $320 for transportation, he might have problems with the rest of his budget due to insufficient income. His total expenses for these three categories alone amount to $1,168, leaving him with only $432 for other expenses. If there are additional expenses such as utilities, entertainment, or savings, it is unlikely that he will have enough money to cover them.