Question

MaryKay wants to identify her monthly variable expenses to see if they are more than 40% of her monthly income. MaryKay's monthly income is $3,800. Her net income is 7% of her monthly income and her fixed expenses are $1,824. Determine the total of MaryKay's variable expenses and if they are more than 40% of her monthly income.

Answer 1

a.

MaryKay's variable expenses total $1,710, which is more than 40% of her monthly income.
b.

MaryKay's variable expenses total $1,976, which is more than 40% of her monthly income.
c.

MaryKay's variable expenses total $266, which is less than 40% of her monthly income.
d.

MaryKay's variable expenses total $1,740, which is more than 40% of her monthly income.