Lucas needs to make several adjustments to his budget based on the differences between his budgeted and actual expenses. Here is a detailed analysis:
1. Income:
- Budgeted total income: \[tex]$400.00
- Actual total income: \$[/tex]375.00
Since the actual income (\[tex]$375.00) is less than the budgeted income (\$[/tex]400.00), Lucas should consider increasing his efforts to ensure a higher income next month. Therefore:
- More for income: True
2. Food:
- Budgeted food expenses: \[tex]$75.00
- Actual food expenses: \$[/tex]125.00
Since the actual food expenses (\[tex]$125.00) are higher than the budgeted food expenses (\$[/tex]75.00), Lucas should reduce his food spending to align better with his budget. Therefore:
- Less for food: True
- More for food: False (as he actually overspent on food and should aim to spend less)
3. Discretionary spending:
- Budgeted discretionary spending: \[tex]$30.00
- Actual discretionary spending: \$[/tex]50.00
Since the actual discretionary spending (\[tex]$50.00) is higher than the budgeted discretionary spending (\$[/tex]30.00), Lucas should consider reducing his discretionary spending to match his budget. Therefore:
- Less for discretionary spending: True
- More for discretionary spending: False (as he overspent and should aim to reduce discretionary expenditure)
Based on this analysis, the correct changes Lucas should consider making to his budget for next month are:
- More for income: True
- Less for food: True
- More for discretionary spending: False
- Less for discretionary spending: True
