Question

Lauryn’s wages were not as much as she had budgeted. How can her budget be modified so there will be a positive actual net income?

Answer 1

The correct answer is:

Her variable expenses can be reduced.

Explanation:

In a household budget, you have fixed expenses and variable expenses.

Fixed expenses are expenses that are the same from month to month, such as a car payment, rent, power bill, etc. These cannot be reduced; if you were to pay less on your car payment, your car would be repossessed; paying less than you owe on the power bill can result in your power being disconnected; etc.

Variable expenses are expenses that are different from month to month, such as food, clothing, shopping, etc. If you are dealing with a situation where your wages are less than you anticipate, you can reduce items within your variable expenses to make sure you have enough money. For example, you can purchase fewer clothes that pay period or cut your grocery bill down.

Answer 2

Answer: Modifing the variable expenses.

Step-by-step explanation:

There are two types of expenses:

Fixed expenses: Such as the rent, internet bill, insurance bill, and things like this. Lauryn can't modify these expenses, so she can not do anything in this area to modify her budget in order to have a net income.

Variable expenses: Are those that can be modified, for example using cheaper fuel in the car, buying cheaper food, cutting the unnecessary expenses, and things like that