Rose is thinking about buying a car. She has RM1,000 saved for a down payment. Before she goes shopping, she wants to know how much she can afford to spend each month on a car. Rose brings home RM926 each month from her first job, and RM974 from her second job.

Her fixed expenses include: RM250 for rent RM34 for a credit card payment on some furniture she bought several months ago that has a total outstanding balance of RM540

Her variable monthly expenses are: RM100 for savings RM20 for telephone RM175 for food RM45 for transportation (bus fare) RM70 for tuition RM20 for school supplies RM40 for clothing RM40 for entertainment RM20 for household supplies RM29 for personal items

If Rose gets a car, she expects to spend about RM60 a month on petrol, and about RM30 on parking and tolls. If Rose gets a car, she will need car insurance. She has done some research, and she expects her car insurance premium to be about RM175 a month.

(a) Prepare a monthly cash budget. (3 marks)