The amount of savings, fixed expenses and variable expenses to set aside for each main decisions of budget.

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Chapter 2, Problem 9P

a)

Summary Introduction

To determine: The amount of savings, fixed expenses and variable expenses to set aside for each main decisions of budget.

b)

Summary Introduction

To determine: The amount remain for payment of debt or extra saving.

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The Brandon household has monthly income of %5,630 on which to base their budget. They plan to save 10% and spend 32% on fixed expenses and 56% on variable expenses. What amount do they plsn to set aside for each budget section in Savings, fixed expenses, and variable expenses?

Consider this example: Simone has a monthly net income of $4,456 dollars. Simone follows the 50/20/30 Budgeting Rule, so she will spend half (50%) of her net monthly income on essentials: $4,456/2 = $2,228 Since there are four essential items (housing, food, transportation, utilities), Simone could just divide her essentials budget by 4, and spend the same amount on each thing, which would look like this: In the image Do you think this is a good way for Simone to divide up her essentials budget? Why or why not? Explain. How do you plan to divide the essentials budger for dnetal?

2. What will be the budgeted ‘Guest Supplies’ expenses for 2020 ($)? • Assume you are working on budgeting for the room department of your hotel. • Assume the hotel’s ‘Room Revenue (Sales)’ was $1,640,000 during 2019. Based on the lodging forecast report, you expect the ‘Room Revenue (Sales)’ to increase by 3.7% next year. • Assume the ‘Guest Supplies’ expenses (variable costs) from the room department was $246,000 during 2019. For 2020, this variable cost will remain at the same percentage of the Room Revenue (Sales) as experienced in 2019. • Assume the ‘Salaries’ expenses (fixed costs) from the room department was $280,000 during 2019. For 2020, this fixed cost will increase by 2% due to the expected increase in living expenses in this area. Note: The Answer field only accepts numbers. Thus, do not include $ or commas when you type your answer. Type your answer as a whole number (e.g., 200000).