80.2K

Verified Solution

Link Copied!

Creating a Hypothetical Budget – Portfolio Activity

Expense	Amount
Rent (monthly)	$657.00
Telephone (monthly)	$56.34
Groceries (weekly)	$56.00
Clothing (monthly with ½ job related)	$106.00
Water & Electric (monthly)	$98.87
Weekly Dinner & Movie	$40.00

You are paid $11.75/hr. You work 40 hr/wk. Your deductions areFICA (7.65%), Federal tax withholding (10.75%), and state taxwithholding (7.5%)

1. Assuming you budget a month as 4 weeks, how much is your totalrealized income, fixed expenses, and discretionary expenses.
2. If you are able to work 20 hours of overtime the next month andare paid 1.5 times your regular rate, how does this change yourbudget for that month?
3. How much can you put towards savings each month if youeliminated your discretionary expenses?

Be sure to include in your response:

• A detailed budget showing income and expenses for the twodifferent months.
• Answers to the original questions.
• An explanation for how you calculated the first 40 hours ofincome and then the additional 20 hours of overtime.

Month 1

Realized Income:	Amount
Total Income
Expense (Fixed):	Amount
Total Expenses (Fixed)
Expense (Discretionary):
Total Expenses (Discretionary)
Total Expenses (Fixed & Discretionary):

Month 2

Realized Income:	Amount
Total Income
Expense (Fixed):	Amount
Total Expenses (Fixed)
Expense (Discretionary):
Total Expenses (Discretionary)
Total Expenses (Fixed & Discretionary):