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The graph below shows Joan Murphy’s monthly budget: Joan’s Monthly Budget - July 2019 €3,000 €2,500 €2,000 €2,000 €1,500 €1,000 €500 €0 Income Expenditure (i) Calculate the difference between Joan’s income and expenditure - Junior Cycle Business Studies - Question 1 - 2019
Question 1
The graph below shows Joan Murphy’s monthly budget: Joan’s Monthly Budget - July 2019 €3,000 €2,500 €2,000 €2,000 €1,500 €1,000 €500 €0 Income Expenditure (i) Ca... show full transcript
Worked Solution & Example Answer:The graph below shows Joan Murphy’s monthly budget: Joan’s Monthly Budget - July 2019 €3,000 €2,500 €2,000 €2,000 €1,500 €1,000 €500 €0 Income Expenditure (i) Calculate the difference between Joan’s income and expenditure - Junior Cycle Business Studies - Question 1 - 2019
Step 1
Calculate the difference between Joan’s income and expenditure. State if it is a surplus/deficit.
Answer
Joan's income is €2,000, and her expenditure is €2,500. To find the difference, we subtract the income from the expenditure:
Difference = Expenditure - Income = €2,500 - €2,000 = €500.
Since expenditure exceeds income, Joan has a deficit of €500.
Step 2
What advice would you give Joan based on your answer?
Answer
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Decrease Expenditure: Joan could cut her discretionary expenditure, such as holidays, to save money.
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Increase Income: Joan could consider doing overtime to manage her income better.
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Shop Around: Joan should shop around for the best deals, potentially using resources like switch.ie to find better options for her expenses.