Ann is planning a trip to Australia. The table below shows the cities she hopes to visit while she is there, as well as the amount of money she estimates that she will spend in each place as a result of lodging, eating, transport, and similar expenses. All costs are given in Australian dollars ($).
| City | Cost ($) |
| -------------- | -------- |
| Toowoomba | 161 |
| Sunshine Coast | 264 |
| Newcastle | 198 |
| Perth | 130 |
| Sydney | 224 |
| Hobart | 301 |
| Bendigo | 277 |
Ann has $1,265 budgeted for this portion of her trip. Which of the following possibilities represents the smallest portion she can cut out of her plans to stay under budget?
A. Toowoomba and Perth
B. Hobart
Answer (2)
Ann needs to reduce her trip cost from $1555 to fit her budget of $1265. The option with the smallest cut, which is Toowoomba and Perth, saves her $291, just over the $290 she needs to cut. Thus, she should choose option A: Toowoomba and Perth.
;
Calculate the total cost of the trip: 161 + 264 + 198 + 130 + 224 + 301 + 277 = 1555 .
Determine the amount over budget: 1555 − 1265 = 290 .
Calculate the cost of option a (Toowoomba and Perth): 161 + 130 = 291 .
The smallest portion to cut out is Toowoomba and Perth, as it allows Ann to stay within her budget. Toowoomba and Perth
Explanation
Calculate Total Cost First, let's calculate the total cost of Ann's planned trip by adding up the costs for each city: Toowoomba ($161), Sunshine Coast ($264), Newcastle ($198), Perth ($130), Sydney ($224), Hobart ($301), and Bendigo ($277).
Total Trip Cost The total cost is: 161 + 264 + 198 + 130 + 224 + 301 + 277 = 1555 So, the total cost of the trip is $1555.
Calculate Amount Over Budget Next, we need to determine how much Ann is over budget. Her budget is $1265, and the trip costs $1555. The amount over budget is: 1555 − 1265 = 290 Ann is over budget by $290.
Cost of Option A Now, let's evaluate the cost of option a, which is cutting out Toowoomba ($161) and Perth ($130). The total cost of this option is: 161 + 130 = 291 So, cutting out Toowoomba and Perth would save $291.
Cost of Option B Next, let's evaluate the cost of option b, which is cutting out Hobart ($301). The cost of this option is $301.
Compare Options To determine which option allows Ann to stay within her budget with the smallest cut, we compare the savings from each option to the amount she is over budget ($290). Option a saves $291, and option b saves $301. Since Ann only needs to cut $290, option a is the smallest cut that allows her to stay within budget.
Final Answer Therefore, the smallest portion Ann can cut out of her plans to stay under budget is Toowoomba and Perth.
Examples
Budgeting for a trip involves estimating costs and making choices to stay within financial limits. This problem demonstrates how to calculate total expenses, determine overspending, and evaluate different options for reducing costs. This type of calculation is useful in many real-life scenarios, such as planning events, managing personal finances, or making business decisions where resources are limited. By understanding how to prioritize and make informed choices, you can effectively manage your budget and achieve your goals.
