Question

Maddox wants to go back to college full-time. His current employer has agreed to reduce his hours from 40 hours to 25 hours while retaining his current rate of pay. Maddox has lived in his own apartment for 1 year and really likes his independence. Which of the following budgets below would fit his new situation?

Monthly Budget
Current Amount
Income
Wages
$1760
Expenses -
Rent
Utilities
Food
Gym Membership
Entertainment
Savings
Clothes
Cell Phone
Car Expenses
$350
$100
$220
$45
$225
$200
$175
$100
$300
Net Income
$45

Monthly Budget
Modified Budget A
Modified Budget B
Modified Budget C
Modified Budget D
Income
Wages
$1100
$1600
$1600
$1100
Expenses -
Rent
Utilities
Food
Gym Membership
Entertainment
Savings
Clothes
Cell Phone
Car Expenses
$350
$100
$120
$0
$20
$50
$30
$100
$300
$350
$100
$120
$0
$20
$50
$30
$100
$300
$350
$100
$220
$45
$225
$200
$175
$100
$300
$350
$100
$220
$45
$220
$150
$130
$100
$300
Net Income
$30
$530
-$115
-$515

a.
Modified Budget A
b.
Modified Budget B
c.
Modified Budget C
d.
Modified Budget D

Answer 1

Answer:

Best fit for his new situation is modified budget A

Step-by-step explanation:

lets first calculate Wages which will be earned by Maddox after reduction of working hours .

from his current situation we can say that ,

for working of 40 hours ,  Maddox monthly income wages = $1760

so  for working of 1 hour , Maddox monthly income wages = $1760÷40=$44

hence for working of 25 hour , Maddox monthly income wages will be $44 × 25 = $1100.

So New wages after reduction of working hours will be $1100. but if you see , in budget B and C , Income wages is considered as $1600 which will not be case after reduction of working hours to 25 . hence Maddox cannot go for Modified Budget B and Modified Budget C.

So he needs to decide between Modified Budget A and Modified Budget D.

Now lets concentrate upon Net income for Modified Budget A and Modified Budget D. Net income for Modified Budget D is in negative that is -$515. that means he need to earn $515 more to meet Budget D , but income wages are fixed that is $1100.

At last lets see Net income of modified budget A. he is able to save $30 , hence we can say that best fit for his new situation is modified budget A

Answer 2

Answer:  

Best fit for his new circumstance is altered spending plan A  

Explanation:

Gives initial a chance to figure Wages which will be earned by Maddox after decrease of working hours .  

From his present circumstance we can say that,  

For working of 40 hours ,  Maddox month to month pay compensation = $1760  

So  for working of 1 hour , Maddox month to month salary compensation = $1760÷40=$44  

Thus to work of 25 hour , Maddox month to month salary wages will be $44 × 25 = $1100.  

So New wages after decrease of working hours will be $1100. be that as it may, in the event that you see , in spending B and C , Income compensation is considered as $1600 which won't be case after decrease of working hours to 25 . subsequently Maddox can't go for Modified Budget B and Modified Budget C.  

So he needs to settle on Modified Budget An and Modified Budget D.  

Presently lets concentrate upon Net pay for Modified Budget An and Modified Budget D. Net gain for Modified Budget D is in negative that is - $515. that implies he have to gain $515 more to meet Budget D , however salary compensation are settled that is $1100.  

Finally gives see A chance to total compensation of adjusted spending plan A. he can spare $30 , subsequently we can say that best fit for his new circumstance is adjusted spending plan A