Question

Mr. jones has a monthly income of $5,600. he wants to identify his monthly variable expenses to see if they are more than 38% of his monthly income. mr. jones has fixed expenses totaling $2,912 and his net income is 12% of his monthly income. determine the total of mr. jones's variable expenses and if they are more than 38% of his monthly income.

a. mr. jones's variable expenses total $672 and do not exceed 38% of his monthly income.
b. mr. jones's variable expenses total $2,688 and do exceed 38% of his monthly income.
c. mr. jones's variable expenses total $3,584 and do exceed 38% of his monthly income.
d. mr. jones's variable expenses total $2,016 and do not exceed 38% of his monthly income.

Answer 1

The answer is D Mr. Jones variable expenses total $2016 and do not exceed 38% of his monthly income.

Answer 2

Answer with explanation:

Monthly income of Mr.Jones= $ 5,600

Fixed Expense of Mr.Jones = $ 2,912

Net income of Mr. Jones =12 % of monthly income

12% of 5600

`(12)/(100)* 5600=672`

→Net Income = Total Income - Total Expense

672 =5600 - Variable expense -Fixed Expense

→Variable Expense = 5600 -672-2912

=5600- 3584

= $ 2016

→38% of $ 5600

`(38)/(100)* 5600=2128`

→2128>2016

38% of $ 5600 > Variable Expense

Option D: Mr. Jones's variable expenses total $2,016 and do not exceed 38% of his monthly income.