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Theresa has \$708 in her account and wishes to throw a party. She plans to include the following:




Purchase		Cost (\$)

Decorations		76.92

Catering		150.66

Musicians		242.15

Refreshments		123.36

Venue		260.47






When Theresa makes the calculations, she finds that she cannot afford everything that she would like to have. What is the cheapest aspect of the party that she can eliminate to keep from overdrawing her account?


AVenue
BMusicians
CCatering
DRefreshments

Verified Answer :

  • Sum all planned costs to find the total: \(\$853.56\).
  • Calculate the budget deficit by subtracting the total budget from the total cost: \(\$853.56 - \$708.00 = \$145.56\).
  • Identify items with a cost of at least \(\$145.56\): Venue (\(\$260.47\)), Musicians (\(\$242.15\)), and Catering (\(\$150.66\)).
  • Choose the cheapest option from this list, which is Catering (\(\$150.66\)), so the answer is \(\boxed{c}\).

Explanation

  1. Calculate Total Planned Cost

First, we calculate the total cost of all the items Theresa plans to include in her party. The individual costs are:

  • Decorations: \(\$76.92\)
  • Catering: \(\$150.66\)
  • Musicians: \(\$242.15\)
  • Refreshments: \(\$123.36\)
  • Venue: \(\$260.47\)

Summing these costs, the total planned expenditure is:
\[76.92 + 150.66 + 242.15 + 123.36 + 260.47 = \$853.56\]

  1. Determine Required Savings

Theresa's budget is \(\$708.00\). Since her total planned cost is \(\$853.56\), she has a deficit that she must eliminate by removing at least one item. The minimum savings required to balance her budget is the difference between the total planned cost and her budget:
\[\$853.56 - \$708.00 = \$145.56\]
Thus, Theresa needs to eliminate an item that costs at least \(\$145.56\).

  1. Select the Cheapest Item to Eliminate

We compare the items available for elimination to the required savings of \(\$145.56\). The potential items listed are:

  • Venue: \(\$260.47\)
  • Musicians: \(\$242.15\)
  • Catering: \(\$150.66\)
  • Refreshments: \(\$123.36\)

We must select items with a cost greater than or equal to \(\$145.56\). These items are the Venue (\(\$260.47\)), the Musicians (\(\$242.15\)), and Catering (\(\$150.66\)). Since Refreshments only cost \(\$123.36\), removing them would not be enough to balance the budget. Among the eligible options, the cheapest item is Catering, which costs \(\$150.66\). Therefore, eliminating the catering is the most cost-effective way for Theresa to keep her expenses within her budget.

Examples

This scenario is a practical application of budgetary analysis. By calculating the total cost of multiple items and comparing it to a fixed budget, one can identify exactly how much must be reduced to avoid overdrawing an account. Similar methods are used in everyday financial planning, such as managing a household budget, planning for travel expenses, or allocating funds for small business projects, ensuring that expenditures remain within sustainable limits.

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