Question

Will has recorded his expenses this week in the budget worksheet below. Expense Budget Description Expense (-) Food $70.00 Car $56.00 Car Insurance $14.00 Entertainment $35.00 If he works three days this week, his income will total $147.00. What could Will do in order to balance his budget? A. increase his entertainment budget by $28.00 B. increase his income by $28.00 C. reduce his income by $18.00 D. reduce his entertainment budget by $18.00

Answer 1

B. increase his income by $28.00

Explanation:

You want to know what Will can do to balance his budget when he has expenses of $70, 56, 14, and 35, and income of $147.

Balance

Will's total expenses for the week are ...

$70 +56 +14 +35 = $175

When he subtracts these from his income for the week, he finds the difference to be ...

$147 -175 = $(-28)

The negative sign means expenses exceed income. In order for the difference to be zero (balanced budget), Will must increase income or decrease expenses, or both. Among the offered choices, the one that makes the appropriate adjustment is ...

B. increase his income by $28.00