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20 September, 08:50

Examine the following budget: Monthly Budget Budgeted Amount Actual Amount Income Wages $1000 $850 Expenses Car - gas, insurance Food & Personal Items Cell Phone College Savings Recreation Clothes $300 $200 $75 $200 $75 $85 $300 $220 $75 $200 $80 $60 Net Income $65 What is the actual net income for the month? What, if any, changes could have been made to the actual amounts this month to keep the actual net income at a positive value?

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  1. 20 September, 11:04
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    What is the actual net income for the month?

    -$ 115

    What, if any, changes could have been made to the actual amounts this month to keep the actual net income at a positive value?

    To achieve a positive result of $135, it's necessary to reduce two items that are over the budget, insurance Food & Personal Items and Recreation, if it's possible to adecuate these values to the forecasted budget then it's possible to have positive results.

    Explanation:

    Result for the Month

    Income statement BDGT REAL

    Income Wages $ 1.000 $ 850

    Expenses Car - gas - $ 300 - $ 200

    insurance Food & Personal Items - $ 75 - $ 200

    Cell Phone - $ 75 - $ 85

    College Savings - $ 300 - $ 220

    Recreation - $ 75 - $ 200

    Clothes - $ 80 - $ 60

    Net Income $ 95 - $ 115

    Modified Result for the Month.

    Income statement BDGT REAL

    Income Wages $ 1.000 $ 850

    Expenses Car - gas - $ 300 - $ 200

    insurance Food & Personal Items - $ 75 - $ 75

    Cell Phone - $ 75 - $ 85

    College Savings - $ 300 - $ 220

    Recreation - $ 75 - $ 75

    Clothes - $ 80 - $ 60

    EBIT $ 95 $ 135
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