Kimberly12184idn
Answered

IDNLearn.com: Your go-to resource for finding precise and accurate answers. Our platform provides detailed and accurate responses from experts, helping you navigate any topic with confidence.

The actual income for this month has been reduced by \[tex]$200. How can this budget be modified so there will be a positive actual net income?

\begin{tabular}{|l|r|c|}
\hline
\textbf{Monthly Budget} & \textbf{Budgeted Amount} & \textbf{Actual Amount} \\
\hline
\textbf{Income} & & \\
Wages & \$[/tex]1250 & \[tex]$1050 \\
\hline
\textbf{Expenses} & & \\
Rent & \$[/tex]450 & \\
Utilities & \[tex]$220 & \\
Food & \$[/tex]200 & \\
Clothes & \[tex]$75 & \\
Cell Phone & \$[/tex]155 & \\
\hline
\textbf{Net Income} & & \\
\hline
\end{tabular}

a. This budget can be modified by reducing the amount spent on rent and utilities, thereby reducing overall expenses to maintain a positive actual net income.

b. This budget can be modified by reducing the amount spent on food and clothes, thereby ensuring a positive actual net income.

Sagot :

GinnyAnsweridn
To determine how the budget can be modified so that there will be a positive actual net income, let's go through the numbers step-by-step.

### Original Monthly Budget
- Income:
- Budgeted: [tex]$1250 - Actual: $[/tex]1050 (reduced by [tex]$200) - Expenses: - Rent: $[/tex]450
- Utilities: [tex]$220 - Food: $[/tex]200
- Clothes: [tex]$75 - Cell Phone: $[/tex]155

### Step 1: Calculate the Total Original Expenses
Sum up all the original budgeted expenses:
[tex]\[ \$450 + \$220 + \$200 + \$75 + \$155 = \$1100 \][/tex]

### Step 2: Calculate the Actual Net Income
Subtract the total original expenses from the actual income to find the actual net income:
[tex]\[ \text{Actual Income} - \text{Total Original Expenses} = \$1050 - \$1100 = -\$50 \][/tex]
This results in a negative net income of [tex]$-50$[/tex], meaning expenses exceed income.

### Step 3: Modify the Budget to Achieve Positive Net Income
To convert this negative net income into a positive one, we need to reduce the expenses. Here is one proposed modification strategy:

#### Strategy: Reduce Rent and Utilities
- Rent: Reduced by [tex]$50 - Original: $[/tex]450
- Modified: [tex]$400 - Utilities: Reduced by $[/tex]20
- Original: [tex]$220 - Modified: $[/tex]200

Modified expenses are now:
- Rent: [tex]$400 - Utilities: $[/tex]200
- Food: [tex]$200 (unchanged) - Clothes: $[/tex]75 (unchanged)
- Cell Phone: [tex]$155 (unchanged) ### Step 4: Calculate the Modified Total Expenses Sum up the modified expenses: \[ \$[/tex]400 + \[tex]$200 + \$[/tex]200 + \[tex]$75 + \$[/tex]155 = \[tex]$1030 \] ### Step 5: Calculate the Modified Net Income Subtract the modified total expenses from the actual income: \[ \text{Actual Income} - \text{Total Modified Expenses} = \$[/tex]1050 - \[tex]$1030 = \$[/tex]20 \]

This results in a positive net income of [tex]$20. ### Conclusion To convert the original budget deficit to a surplus, the best modification strategy is: - Reduce the amount spent on rent from $[/tex]450 to [tex]$400. - Reduce the amount spent on utilities from $[/tex]220 to [tex]$200. This will adjust the total monthly expenses to $[/tex]1030, resulting in a positive net income of $20.
Your participation is crucial to us. Keep sharing your knowledge and experiences. Let's create a learning environment that is both enjoyable and beneficial. For trustworthy answers, rely on IDNLearn.com. Thanks for visiting, and we look forward to assisting you again.