Application 1 Direction: Solve the problems below by choosing the best letter choice for each. You do not need to show any work. The only way to receive credit for this assignment is to directly enter your letter choice of the best answer for each problem to Carvas by the deadline indicated below. In other words, if you enter anything besides the letter choice of the correct answer for any problem, no credit will be given. Each problem is worth 5 points. If any of the following information does not display properly in Canvas, refer to the word document titled App 1.docx for more details. Note that this assignment is due by noon on Friday, 12/3/21. Use Ashley's budget below to answer the following questions Item Income Savings Rent Utilities Transportation Food Consumer debt payments Entertainment Projected Actual 1400 1445 60 70 450 450 240 258 180 145 160 175 160 160 150 187 1. What is Ashley's income deviation? (Hint: Income deviation is defined as actual income -projected income.) (5 pts) a. SO b. 58 c. -$35 d. $45 2. What is Ashley's expense deviation? (Hint: Expense deviation is defined as total actual spending - total projected spending. Note savings is NOT an expense.) (5 pts) a $8 b. $15 c. $35 d. $37 3. What is Ashley's surplus/deficit for this month? (Hint: Surplus/deficit is income deviation - expense deviation. It is a surplus when this difference is positive and a decit when it is negative.) (5 pts) a. Surplus of $45 b. Surplus of $10 c. Deficit of $35 d. Deficit of $80 4. What is Ashley's actual savings ratio and does she meet the guideline? (Hint: Savings ratio = savings /income and the guideline is that it should be 12% or higher.) a. 4.75%; no b. 4.84%; no c. 4.93%; no d. 4.98%; no 5. What Ashley's actual consumer debt to income ratio and does she meet the guideline? (Hint: Consumer debt to income ratio - Consumer debt payments /income and the guideline is that it should be 15% or lower.) a. 11.07%; yes b. 11.12%; yes c. 11.16%; yes d. 11.23%; yes