To determine which changes Lucas should consider making to his budget for next month, let's analyze the differences between the budgeted amounts and the actual amounts.
1. Net Income:
- Budgeted: [tex]$400.00
- Actual: $[/tex]375.00
- Since Lucas's actual net income is less than the budgeted amount, he should plan for less for income.
2. Total Income:
- Budgeted: [tex]$400.00
- Actual: $[/tex]375.00
- This is consistent with the net income being less than budgeted.
3. Rent and Bus Pass:
- Both budgeted and actual amounts match, so no changes are necessary for these fixed expenses.
4. Food:
- Budgeted: [tex]$75.00
- Actual: $[/tex]125.00
- Lucas's actual food expenses were higher than budgeted. Hence, he should plan for more for food.
5. Discretionary Spending:
- Budgeted: [tex]$30.00
- Actual: $[/tex]50.00
- Lucas's actual discretionary spending was higher than budgeted. Thus, he should plan for more for discretionary spending.
6. Total Fixed and Variable:
- The variations in total fixed and variable expenses are consistent with the changes noted in rent, bus pass, food, and discretionary spending.
7. Savings:
- Budgeted: [tex]$75.00
- Actual: -$[/tex]20.00
- The negative savings indicate an over-expenditure. This further highlights the need to adjust for the differences in income and variable expenses.
Based on this analysis, Lucas should consider making the following changes to his budget for next month:
- less for income
- more for food
- more for discretionary spending
Thus, the recommended changes for Lucas are:
- less for income
- more for food
- more for discretionary spending
