Predict how much money can be saved without having a negative actual net income.

\begin{tabular}{|l|r|r|}
\hline
\textbf{Monthly Budget} & \textbf{Budgeted Amount} & \textbf{Actual Amount} \\
\hline
\textbf{Income} & & \\
Wages & \[tex]$1025 & \$[/tex]675 \\
\hline
\textbf{Expenses} & & \\
Rent & \[tex]$300 & \$[/tex]300 \\
Utilities & \[tex]$100 & \$[/tex]100 \\
Food & \[tex]$75 & \$[/tex]200 \\
Cell Phone & \[tex]$300 & \$[/tex]75 \\
Savings & \[tex]$75 & \$[/tex] \\
\hline
\textbf{Net Income} & & \[tex]$ \\
\hline
\end{tabular}

a. It is not possible to save any money this month without having a negative actual net income.

b. \$[/tex]350 can be saved resulting in an actual net income of \[tex]$0.

c. \$[/tex]200 can be saved resulting in an actual net income of \[tex]$75.

d. Because there is a \$[/tex]75 budgeted net income, that \$75 can be put towards savings.



Answer :

Let's break down how much money can be saved without having a negative actual net income, step by step.

### Step 1: Calculate the actual net income without savings
First, we need to determine the actual net income without considering any savings.

The actual expenses are:
- Rent: [tex]$300 - Utilities: $[/tex]100
- Food: [tex]$200 - Cell Phone: $[/tex]75

Total actual expenses = [tex]$300 + $[/tex]100 + [tex]$200 + $[/tex]75 = [tex]$675 The actual wages are: $[/tex]675

Actual net income without savings = Actual wages - Total actual expenses
= [tex]$675 - $[/tex]675 = [tex]$0 ### Step 2: Consider scenarios for savings We need to figure out how much money can be saved without resulting in a negative actual net income. Since the actual net income without savings is $[/tex]0, saving any amount would lead to a negative net income.

a. It is not possible to save any money this month without having a negative actual net income.
- Because the actual net income without savings is [tex]$0, saving any amount would result in a negative net income. Therefore, it is not possible to save any money. ### Conclusion The optimal prediction for how much money can be saved without having a negative actual net income is given by: a. It is not possible to save any money this month without having a negative actual net income. As such, the possible savings for this month is $[/tex]0, and the actual net income will remain at $0.