Question

James's income for the month of August was $2,375. Her fixed expenses were $750, and her variable expenses total $1,750. What is James's savings for the month?

a) $875
b) $600
c) $825
d) $1,225

Answer 1

James has a deficit of $125 for the month of August after subtracting her total expenses of $2,500 from her income of $2,375, meaning she has no savings and actually overspent.

Step-by-step explanation:

James's savings for the month can be calculated by subtracting the total expenses from the income. Let's break it down:

• Income for August: $2,375
• Fixed expenses: $750
• Variable expenses: $1,750

Total expenses are the sum of fixed and variable expenses:

$750 + $1,750 = $2,500

Now, subtract the total expenses from the income:

$2,375 - $2,500 = -$125

Instead of savings, James actually has a deficit of $125 for the month of August. This means none of the given options (a) $875, (b) $600, (c) $825, or (d) $1,225 are correct. James would need to adjust her expenses or income to avoid this deficit.