Kyle is planning to take a roadtrip. After he makes his plans, he has to make some unexpected auto repairs. Also, he sees the price of gas has gone up. Which of these two events should Kyle consider in deciding if it is still worthwhile to go on the trip? a. the unexpected repairs and the increase in the price of gas b. the unexpected increase for repairs, but not the increase in the price of gas c. the increase in the price of gas, but not the unexpected repairs d. neither the unexpected increase in the price of gas nor the unexpected repairs

Option (a) The unexpected repairs and the increase in the price of gas.

Explanation: The road trip ideally would have had a certain amount budgeted for it. Same as every other expense and bills that Kyle is responsible for.

An extra-budgetary item, that is, an item not previously factored into Kyle’s monthly or annual budget as the case may be, could result in Kyle’s inability to meet up with certain routine expenditures.

An unexpected auto repair expense and an increase in the price of gas obviously was not part of the budget. The road trip itself was already budgeted for, therefore spending more on gas for the trip and spending money on unexpected repairs simply means the cost of the road trip would increase considerably.

As explained earlier, such unexpected expenditure would result in changes in the entire budget.

If there is a provision for emergency expenses (which is what Kyle has just experienced), then he has the option of taking from such funds to take care of the auto repairs and increased cost of gas. However, if there is no provision for emergency expenses, Kyle might have to postpone or even cancel the trip.

Whichever of the options he chooses, what we do know is these two events would have an impact on his finances (and that is a major factor in planning the road trip) and for that reason he has to decide if it’s worthwhile or not.

the answer is a.

by: nicholas dooley