Answer :
Let's analyze Tokuji's current and future budget step-by-step to determine the possible increase in discretionary spending.
### Current Month's Budget
1. Net Income: \$600
2. Total Income: \$600
3. Fixed Expenses:
- Rent: \$300
- Train pass: \$30
Total Fixed Expenses: \[tex]$300 + \$[/tex]30 = \$330
4. Variable Expenses:
- Food: \$100
- Clothing: \$40
- Discretionary: \$50
Total Variable Expenses: \[tex]$100 + \$[/tex]40 + \[tex]$50 = \$[/tex]190
5. Savings: \$80
To calculate the initial discretionary spending, we subtract the fixed expenses, variable expenses, and savings from the net income:
[tex]\[ \text{Discretionary Spending Initial} = \[tex]$600 - (\$[/tex]330 + \[tex]$190 + \$[/tex]80) \][/tex]
[tex]\[ \text{Discretionary Spending Initial} = \[tex]$600 - \$[/tex]600 = \$0 \][/tex]
### Next Month's Budget
Next month, Tokuji's net income will increase to \[tex]$650, and his savings will increase to \$[/tex]110. The fixed and variable expenses remain the same.
1. Net Income: \$650
2. Fixed Expenses (same as before):
- Rent: \$300
- Train pass: \$30
Total Fixed Expenses: \$330
3. Variable Expenses (same as before):
- Food: \$100
- Clothing: \$40
Total Variable Expenses: \[tex]$100 + \$[/tex]40 = \$140
4. Savings: \$110
To calculate the discretionary spending for the next month, we subtract the fixed expenses, variable expenses, and savings from the net income:
[tex]\[ \text{Total Expenses Next} = \[tex]$330 + \$[/tex]140 + \$110 \][/tex]
[tex]\[ \text{Total Expenses Next} = \$580 \][/tex]
[tex]\[ \text{Discretionary Spending Next} = \[tex]$650 - \$[/tex]580 \][/tex]
[tex]\[ \text{Discretionary Spending Next} = \$70 \][/tex]
### Increase in Discretionary Spending
To find the increase in discretionary spending:
[tex]\[ \text{Increase in Discretionary Spending} = \[tex]$70 - \$[/tex]50 = \$20 \][/tex]
Thus, Tokuji can increase his discretionary spending by \$20.
### Conclusion
Out of the given choices:
- \$20
- \$10
- \$40
- \$30
The correct answer is \$20.
### Current Month's Budget
1. Net Income: \$600
2. Total Income: \$600
3. Fixed Expenses:
- Rent: \$300
- Train pass: \$30
Total Fixed Expenses: \[tex]$300 + \$[/tex]30 = \$330
4. Variable Expenses:
- Food: \$100
- Clothing: \$40
- Discretionary: \$50
Total Variable Expenses: \[tex]$100 + \$[/tex]40 + \[tex]$50 = \$[/tex]190
5. Savings: \$80
To calculate the initial discretionary spending, we subtract the fixed expenses, variable expenses, and savings from the net income:
[tex]\[ \text{Discretionary Spending Initial} = \[tex]$600 - (\$[/tex]330 + \[tex]$190 + \$[/tex]80) \][/tex]
[tex]\[ \text{Discretionary Spending Initial} = \[tex]$600 - \$[/tex]600 = \$0 \][/tex]
### Next Month's Budget
Next month, Tokuji's net income will increase to \[tex]$650, and his savings will increase to \$[/tex]110. The fixed and variable expenses remain the same.
1. Net Income: \$650
2. Fixed Expenses (same as before):
- Rent: \$300
- Train pass: \$30
Total Fixed Expenses: \$330
3. Variable Expenses (same as before):
- Food: \$100
- Clothing: \$40
Total Variable Expenses: \[tex]$100 + \$[/tex]40 = \$140
4. Savings: \$110
To calculate the discretionary spending for the next month, we subtract the fixed expenses, variable expenses, and savings from the net income:
[tex]\[ \text{Total Expenses Next} = \[tex]$330 + \$[/tex]140 + \$110 \][/tex]
[tex]\[ \text{Total Expenses Next} = \$580 \][/tex]
[tex]\[ \text{Discretionary Spending Next} = \[tex]$650 - \$[/tex]580 \][/tex]
[tex]\[ \text{Discretionary Spending Next} = \$70 \][/tex]
### Increase in Discretionary Spending
To find the increase in discretionary spending:
[tex]\[ \text{Increase in Discretionary Spending} = \[tex]$70 - \$[/tex]50 = \$20 \][/tex]
Thus, Tokuji can increase his discretionary spending by \$20.
### Conclusion
Out of the given choices:
- \$20
- \$10
- \$40
- \$30
The correct answer is \$20.
