Question

Lewis has a net spendable income of $2,000 per month. He sets up the following transportation budget for himself.

3. Transportation (15% - 20%) 400
a. Car payments 210
b. Gas/Oil 120
c. Insurance 60
d. License/Registration 8
e. Taxes 2
f. Maintenance/Repair
What has Lewis done wrong?
A.
He budgeted more than the maximum recommended amount of money for transportation.
B.
He budgeted less than the minimum recommended amount of money to cover gas for the month.
C.
He has more money in the subcategories than he budgeted for in the main category.
D.
He has not budgeted for all of the expenses in the subcategories.

Answer 1

What do you think we can eliminate

Answer 2

D

Answer 3

Ok anyone else?

Answer 4

Lewis had done wrong in budgeting. He had budgeted more than the maximum recommended amount of money for transportation. This is why nothing is left for maintenance or repair.

Answer 5

So A?

Answer 6

Yes

Answer 7

A is the answer you're looking for