Answer: It shows a deficit of $22.
Step-by-step explanation:
His biweekly net income is $864. This means that his income in two weeks is $864. There are 4 weeks in a month. Therefore, his monthly income is 2×864 = $1728
Each month, Michael budgets $1200 for fixed expenses and $550 for living expenses. This means that his total monthly expenses will be the sum of his fixed expenses and living expenses. Therefore
Monthly expenses = 1200 + 550 = $1750. This is lower than his monthly income by a deficit of
1728 - 1750 = - $22
