JJ is working his way through college. He has 2 part-time jobs that allow him to cover his expenses. He has the following accounts in his budget:
All of expenses are fixed except for Groceries and Savings.
JJ has learned that next year he will get a raise at the library which will increase his after tax pay to $26,500. He would like to use the additional income to rent a better apartment and has found one that will cost him $14,760 for the year. He has also decided to use zero-based budgeting for his future financial planning.
Using the information above, answer the following:
a. What is a zero-based budget?
b. What would JJ's budget look like for the current year?
c. Using the planned changes information for next year, what would his budget look like for next year? Explain the changes you made.
All calculations should be rounded to the nearest whole number.

Question

JJ is working his way through college. He has 2 part-time jobs that allow him to cover his expenses. He has the following accounts in his budget:
  All of expenses are fixed except for Groceries and Savings.
JJ has learned that next year he will get a raise at the library which will increase his after tax pay to $26,500. He would like to use the additional income to rent a better apartment and has found one that will cost him $14,760 for the year. He has also decided to use zero-based budgeting for his future financial planning.
Using the information above, answer the following:
a. What is a zero-based budget?
b. What would JJ's budget look like for the current year?
c. Using the planned changes information for next year, what would his budget look like for next year? Explain the changes you made.
All calculations should be rounded to the nearest whole number.

Quizplus · Accepted Answer

The Answer of JJ is working his way through college. He has 2 part-time jobs that allow him to cover his expenses. He has the following accounts in his budget:
  All of expenses are fixed except for Groceries and Savings.
JJ has learned that next year he will get a raise at the library which will increase his after tax pay to $26,500. He would like to use the additional income to rent a better apartment and has found one that will cost him $14,760 for the year. He has also decided to use zero-based budgeting for his future financial planning.
Using the information above, answer the following:
a. What is a zero-based budget?
b. What would JJ's budget look like for the current year?
c. Using the planned changes information for next year, what would his budget look like for next year? Explain the changes you made.
All calculations should be rounded to the nearest whole number.

JJ Is Working His Way Through College