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aniked [119]
3 years ago
12

Jim earns $1,600 per month after taxes. He is working on his budget and has the first three categories finished. Housing $576 Fo

od $272 Transportation $320 Why will he have a problem with the rest of his budget? He is budgeting too much for transportation. He has used the highest recommended percentages to calculate the amounts for the three categories. He is budgeting too much for housing.
Mathematics
2 answers:
Afina-wow [57]3 years ago
5 0

B.

He has used the highest recommended percentages to calculate the amounts for the three categories.

Anton [14]3 years ago
4 0

Answer:

He has used the highest recommended percentages to calculate the amounts for the three categories.

Step-by-step explanation:

Monthly net earnings of Jim = $1600

He has budgeted Housing = $576

Food = $272

Transportation = $320

As no recommended percentage of food and housing is given so we can consider the ideal percentage. Ideally, a maximum of 30 to 35 percent should be spent on housing. And a maximum of 25 to 30% on food and transportation combined.

Here lets calculate 35% of housing, 0.35*1600= $560

And 30% of food and transportation , 0.30*1600=480

But Jim is spending $576 on housing and $592 on food and transportation. Comparing with the ideal maximum limit, we can see that Jim's budget has crossed the maximum limit.

So, the correct option is - He has used the highest recommended percentages to calculate the amounts for the three categories.

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