To determine whether Dan stayed on budget this month, let's analyze each component step by step.
1. Budgeted and Spent Amounts:
- Internet: Budgeted \[tex]$35 and Spent \$[/tex]35.
- Food: Budgeted \[tex]$100 and Spent \$[/tex]95.
- Rent: Budgeted \[tex]$500 and Spent \$[/tex]500.
- Discretionary spending: Budgeted \[tex]$100 and Spent \$[/tex]140.
2. Calculate the Total Budgeted Amount:
- Total Budgeted = Internet Budgeted + Food Budgeted + Rent Budgeted + Discretionary Budgeted
- Total Budgeted = \[tex]$35 + \$[/tex]100 + \[tex]$500 + \$[/tex]100 = \[tex]$735
3. Calculate the Total Spent Amount:
- Total Spent = Internet Spent + Food Spent + Rent Spent + Discretionary Spent
- Total Spent = \$[/tex]35 + \[tex]$95 + \$[/tex]500 + \[tex]$140 = \$[/tex]770
4. Compare Total Spent with Total Budgeted and Income:
- Total Budgeted is \[tex]$735.
- Total Spent is \$[/tex]770.
- Dan's income is \[tex]$750.
5. Determine if Dan Stayed on Budget:
- Dan's total spent (\$[/tex]770) is greater than his total budgeted amount (\[tex]$735).
- Additionally, Dan's total spent (\$[/tex]770) is also greater than his income (\[tex]$750).
Since Dan spent more than both his budgeted amount and his income, he did not stay on budget. The primary reason for this overspending stemmed from his discretionary spending, as he spent \$[/tex]140, which is \[tex]$40 over the budgeted amount of \$[/tex]100.
Conclusion:
No, Dan should reduce his discretionary spending.
