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Pam can budget for fluctuations in her income caused by commission earnings by using a flexible budgeting system. This system involves creating a budget based on estimated commissions earned and having the ability to adjust expenditures as necessary when actual commissions are received. She can also allocate an emergency fund from each paycheck to cover any unexpected expenses that may arise due to volatile income fluctuations. Additionally, Pam could create multiple budgets for different levels of income (high, average, low) and adjust her spending accordingly depending on her current level of earnings.