Mike has a net spendable income of $1,400. He decides to set up a budget before looking for an apartment or a car. He sets up his budget and finds that he has lots of money left over. He puts the extra money into entertainment. Housing $420 Food $168 Transportation $210 Insurances $42 Debts $70 Entertainment $224 Clothing $70 Savings $70 Medical $56 Miscellaneous $70 Why might this budget be a problem? A. Mike will spend more money than he is earning. B. Mike does not have enough money budgeted for food or medical expenses. C. Mike is using the minimum recommended percentages for food, housing, and transportation. The costs are likely to exceed the expenses in each category. D. Mike has not budgeted all of his money. He will find that he has extra money at the end of the month, which will end up being wasted.
Answers
Answer:
C. Mike is using the minimum recommended percentages for food, housing, and transportation. The costs are likely to exceed the expenses in each category.
Step-by-step explanation:
Income:
$1,400
Spending:
$420+$168+$210+$42+$70+$224+$70+$70+$56+$70= $1400
As we see Mike is spending same amount as he earns.
A. Mike will spend more money than he is earning.
- No, numbers are equal
B. Mike does not have enough money budgeted for food or medical expenses.
- No
C. Mike is using the minimum recommended percentages for food, housing, and transportation. The costs are likely to exceed the expenses in each category.
- Yes, this is an option. He won't have any money left for more spending in this category.
D. Mike has not budgeted all of his money. He will find that he has extra money at the end of the month, which will end up being wasted.
- No, spending is based on income
Answer:
Mike is using the minimum recommended percentages for food, housing, and transportation. The costs are likely to exceed the expenses in each category.
Step-by-step explanation: