Answer :
Let's analyze Lucas's budgeted and actual amounts to determine the necessary changes he should consider making to his budget for next month.
1. Net/Total Income:
- Budgeted: \[tex]$400.00 - Actual: \$[/tex]375.00
- Change: \[tex]$375.00 - \$[/tex]400.00 = -\[tex]$25.00 Since Lucas's actual income is \$[/tex]25.00 less than his budgeted income, he should consider less for income.
2. Food Expenses:
- Budgeted: \[tex]$75.00 - Actual: \$[/tex]125.00
- Change: \[tex]$125.00 - \$[/tex]75.00 = \[tex]$50.00 Lucas spent \$[/tex]50.00 more on food than he had budgeted. Therefore, he should consider more for food.
3. Discretionary Spending:
- Budgeted: \[tex]$30.00 - Actual: \$[/tex]50.00
- Change: \[tex]$50.00 - \$[/tex]30.00 = \[tex]$20.00 Lucas's actual discretionary spending was \$[/tex]20.00 more than what he budgeted. Therefore, he should consider more for discretionary spending.
Based on the analysis of changes:
- Lucas's income decreased by \[tex]$25.00. - His food expenses increased by \$[/tex]50.00.
- His discretionary spending increased by \$20.00.
Hence, Lucas should consider the following changes to his budget for next month:
- less for income
- more for food
- more for discretionary spending
1. Net/Total Income:
- Budgeted: \[tex]$400.00 - Actual: \$[/tex]375.00
- Change: \[tex]$375.00 - \$[/tex]400.00 = -\[tex]$25.00 Since Lucas's actual income is \$[/tex]25.00 less than his budgeted income, he should consider less for income.
2. Food Expenses:
- Budgeted: \[tex]$75.00 - Actual: \$[/tex]125.00
- Change: \[tex]$125.00 - \$[/tex]75.00 = \[tex]$50.00 Lucas spent \$[/tex]50.00 more on food than he had budgeted. Therefore, he should consider more for food.
3. Discretionary Spending:
- Budgeted: \[tex]$30.00 - Actual: \$[/tex]50.00
- Change: \[tex]$50.00 - \$[/tex]30.00 = \[tex]$20.00 Lucas's actual discretionary spending was \$[/tex]20.00 more than what he budgeted. Therefore, he should consider more for discretionary spending.
Based on the analysis of changes:
- Lucas's income decreased by \[tex]$25.00. - His food expenses increased by \$[/tex]50.00.
- His discretionary spending increased by \$20.00.
Hence, Lucas should consider the following changes to his budget for next month:
- less for income
- more for food
- more for discretionary spending
