to find the average variable expenses, follow the same method you used to find the average fixed expenses…

to find the average variable expenses, follow the same method you used to find the average fixed expenses. focus on the idea to find average fixed or variable expenses, add all the fixed or variable expenses, then divide the total by the number of units of time. practice use the chart for exercises 1 to 6. 1. which expenses are fixed? 2. which expenses are variable? 3. estimate the average monthly fixed expenses. 4. calculate the average of the monthly fixed expenses. 5. estimate the average monthly variable expenses. 6. calculate the average of the monthly variable expenses.

to find the average variable expenses, follow the same method you used to find the average fixed expenses. focus on the idea to find average fixed or variable expenses, add all the fixed or variable expenses, then divide the total by the number of units of time. practice use the chart for exercises 1 to 6. 1. which expenses are fixed? 2. which expenses are variable? 3. estimate the average monthly fixed expenses. 4. calculate the average of the monthly fixed expenses. 5. estimate the average monthly variable expenses. 6. calculate the average of the monthly variable expenses.

Answer

Explanation:

Step1: Identify fixed expenses

Fixed expenses are those that do not change in amount each month. From the table, Rent ($825.00 each month) and Life - insurance ($12.50 each month) are fixed expenses.

Step2: Identify variable expenses

Variable expenses change in amount each month. Telephone, Electric, Gas, and Food are variable expenses.

Step3: Estimate average monthly fixed expenses

Rent is about $825$ and life - insurance is about $12.5$. The total fixed expense per month is approximately $825 + 12.5=837.5$.

Step4: Calculate average monthly fixed expenses

The total fixed expense for 3 months for rent is $825\times3 = 2475$ and for life - insurance is $12.5\times3=37.5$. The total fixed expense for 3 months is $2475 + 37.5=2512.5$. The average monthly fixed expense is $\frac{2512.5}{3}=837.5$.

Step5: Estimate average monthly variable expenses

For telephone: $(42.50 + 35.00+59.76)\approx(40 + 35+60)=135$, for electric: $(85.25+47.29 + 39.45)\approx(90+50 + 40)=180$, for gas: $(15.30+13.72+11.88)\approx(15+14 + 12)=41$, for food: $(150.05+126.37+200.96)\approx(150+130+200)=480$. The total estimated variable expense is $135 + 180+41+480 = 836$. The estimated average monthly variable expense is $\frac{836}{3}\approx279$.

Step6: Calculate average monthly variable expenses

Total telephone expense: $42.50+35.00 + 59.76=137.26$. Total electric expense: $85.25+47.29+39.45 = 171.99$. Total gas expense: $15.30+13.72+11.88 = 40.9$. Total food expense: $150.05+126.37+200.96=477.38$. The total variable expense for 3 months is $137.26+171.99+40.9+477.38 = 827.53$. The average monthly variable expense is $\frac{827.53}{3}\approx275.84$.

Answer:

  1. Rent and Life - insurance are fixed expenses.
  2. Telephone, Electric, Gas, and Food are variable expenses.
  3. Approximately $837.5$.
  4. $837.5$.
  5. Approximately $279$.
  6. Approximately $275.84$.