Answer:
Best fit for his new situation is modified budget A
Step-by-step explanation:
lets first calculate Wages which will be earned by Maddox after reduction of working hours .
from his current situation we can say that ,
for working of 40 hours , Maddox monthly income wages = $1760
so for working of 1 hour , Maddox monthly income wages = $1760÷40=$44
hence for working of 25 hour , Maddox monthly income wages will be $44 × 25 = $1100.
So New wages after reduction of working hours will be $1100. but if you see , in budget B and C , Income wages is considered as $1600 which will not be case after reduction of working hours to 25 . hence Maddox cannot go for Modified Budget B and Modified Budget C.
So he needs to decide between Modified Budget A and Modified Budget D.
Now lets concentrate upon Net income for Modified Budget A and Modified Budget D. Net income for Modified Budget D is in negative that is -$515. that means he need to earn $515 more to meet Budget D , but income wages are fixed that is $1100.
At last lets see Net income of modified budget A. he is able to save $30 , hence we can say that best fit for his new situation is modified budget A
