Question

Sam's total expenses last month were $1840. What was his total variable cost for last

month?
Expense
Amount
Rent
$100
Groceries and drinks
$1000
$10
Insurance premiums
Loan interest payment
Clothes
$30
$200
&
Utilities
$300
Home security fee
$200​

Answer 1

$1500

Explanation:

I just took the test and got it right

Answer 2

$1500

Explanation:

It is given that

Rent = $100

Groceries and drinks = $1000

Insurance premiums = $10

Loan interest payment =$30

Clothes = $200

Utilities = $300

Home security fee = $200​

Fixed cost are costs that does not vary and variable cost are costs that vary with goods and services.

In the given problem, rent , insurance premiums, loans interest payment ad home security fee are fixed cost.

Groceries and drinks, clothes and utilities are variable cost.

So, total variable cost for last month is

`\text{Total variable cost}=\$1000+\$200+\$300=\$1500`

Therefore, total variable cost for last month is $1500.