Question

In a quarter, a company had

Total Expenses of $12,159
and sold 1,164 items at a
Variable Expense of $2.87
each. What must its Fixed
Expenses (FE) have been
for the quarter?
Round to the nearest
dollar.

Answer 1

$8,819.

Step-by-step explanation:

Formula:

Total Expenses = Fixed Expenses (FE) + (Number of Items Sold × Variable Expense per Item)

Math:

$12,159 = FE + (1,164 × $2.87)

1,164 × $2.87 = $3,339.18

$12,159 - $3,339.18 ≈ $8,819

Rounded to the nearest dollar, Fixed Expenses (FE) for the quarter ≈ $8,819.

FE is the cost of running a business without selling anything. You find it by subtracting the cost of each item sold from the total cost.

FE (Fixed Expenses)? how much money a company had to pay for certain things.

FE is the cost that doesn't change, like rent. FE = Total cost - (Cost per item * Number of items sold).

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