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Zigmanuir [339]
3 years ago
10

Next month, Tokuji's monthly net income will increase to $650. If he increases his savings to $110 a month, how much can he incr

ease his discretionary spending

History
2 answers:
forsale [732]3 years ago
6 0
Tokuji can increase his discretionary spending by $20.

This condition can be applied if his fixed and variable cost remain in the previous state except the discretionary spending. Tokuji still have $180 after his new income attributed into every fixed and variable cost, except the discretionary spending ($180 = $650 - $300 - $30 - $100 - $40). The remaining amount still can be attributed to $110 saving and $70 of the discretionary spending. Then, there would be an increase amounting $20 for the discretionary income comparing to the previous amount.
yaroslaw [1]3 years ago
4 0
<h2>The correct answer on Edg is A ($20)</h2>

hope i helped :)

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