Answer to Question #198984 in Accounting for Marta

Question

abebe is an employee of 3F furniture company earns a monthly net income of birr 15000. 25% of total income is used to cover his fixed cost and the remaining income is used to cover his variable expenses and saving. saving is 15% of his variable expenses. the expected actual variable expanses are 85% of the budgeted variable expenses. if variable expenses budget is deficit deducted from personal saving and variable expense budget is surplus added to personal saving. his net income will be expected to increase by 20% from February month.

Prepare personal budget of march 2015.

calculate total saving at the end of march 2015 

Answer 1

The Personal Budget for Abebe the savings plan have been captured in the table below;