Analyze the following budget, with an income of $600, to determine how much can be spent on food for the month.
| Month | Budgeted Amount |
| :-------- | :------- |
| Cell Phone | $65 |
| Food | $ |
| Entertainment | $95 |
| College Savings | $200 |
| Car Expenses - Gas, Insurance | $160 |
a. $210 can be spent on food.
b. $145 can be spent on food.
c. $80 can be spent on food.
d. $260 can be spent on food.
Please select the best answer from the choices provided
Answer (2)
Calculate the total expenses: 65 + 95 + 200 + 160 = 520 .
Subtract the total expenses from the total income: 600 − 520 = 80 .
The amount that can be spent on food is $80.
The final answer is $80 .
Explanation
Understanding the Problem We are given a budget with a total income of $600 and several expenses. Our goal is to determine how much money can be allocated to food. To do this, we need to subtract all the known expenses from the total income.
Listing Expenses The expenses are:
Cell Phone: $65
Entertainment: $95
College Savings: $200
Car Expenses: $160
Calculating Total Expenses Let's calculate the total expenses: 65 + 95 + 200 + 160 = 520 The total expenses are $520.
Finding the Food Budget Now, subtract the total expenses from the total income to find the amount available for food: 600 − 520 = 80 Therefore, $80 can be spent on food.
Final Answer The amount that can be spent on food is $80, which corresponds to option c.
Examples
Budgeting is a crucial skill in personal finance. For example, if you earn a certain amount of money each month, you need to allocate it wisely among various expenses like rent, utilities, transportation, food, and savings. By tracking your income and expenses, you can identify areas where you can save money and make informed decisions about how to spend your money. This ensures that you live within your means and achieve your financial goals.
The analysis of the budget shows that after accounting for fixed expenses totaling $520, there is $80 left that can be allocated for food. Therefore, the best choice is c : $80 can be spent on food.
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