Answered

Analyze the following budget, with an income of \$750, to determine how much can be spent on food for the month.




Month \_\_\_\_		Budgeted Amount

Food		\$ \_\_\_\_

Personal Items		\$20

Cell Phone		\$75

Entertainment		\$85

Car Expenses - Gas, Insurance		\$260

College Savings		\$250





ANo more than \$70 can be spent on food.
BNo more than \$75 can be spent on food.
CNo more than \$80 can be spent on food.
DNo more than \$60 can be spent on food.

Verified Answer :

  • Calculate the sum of fixed monthly expenses: \(20 + 75 + 85 + 260 + 250 = \$690\).
  • Subtract the fixed expenses from the total income: \(750 - 690 = \$60\).
  • Conclude that the maximum amount allowed for food is \(\$60\).
  • The final answer is \(\boxed{d}\).

Explanation

  1. Problem Analysis

To determine the maximum allowable amount for food, we need to consider the total monthly income and subtract all other fixed monthly expenses.
The given data is:

  • Total Monthly Income = \(\$750\)
  • Personal Items = \(\$20\)
  • Cell Phone = \(\$75\)
  • Entertainment = \(\$85\)
  • Car Expenses = \(\$260\)
  • College Savings = \(\$250\)

Let \(F\) be the amount spent on food. The sum of all expenses must be less than or equal to the total monthly income:
\[F + 20 + 75 + 85 + 260 + 250 \leq 750\]

  1. Calculation and Conclusion

First, we calculate the total of the fixed expenses:
\[20 + 75 + 85 + 260 + 250 = 690\]
Next, we subtract this total from the monthly income to find the maximum amount available for the food budget:
\[F \leq 750 - 690\]
\[F \leq 60\]
Thus, the maximum amount that can be spent on food is \(\$60\). Looking at the provided options:

ANo more than \(\$70\)
BNo more than \(\$75\)
CNo more than \(\$80\)
DNo more than \(\$60\)

The correct option is d.

Examples

Budgeting is a fundamental life skill that helps individuals and families manage their financial resources effectively. By listing all income and expenses, you can determine how much money is available for discretionary spending, such as food, savings, or entertainment. In this scenario, we calculated the remaining budget for food after accounting for fixed monthly costs, demonstrating how to prioritize expenses and live within one's means. Regular budgeting ensures long-term financial stability and prevents overspending.

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