100 POINTS if it is wrong i will delete your answer! Calculating Monthly Expenses

100 POINTS if it is wrong i will delete your answer! Calculating Monthly Expenses

The second step to building a family budget is to outline your expenses in greater detail, itemizing fixed and variable expenses.

Suppose the table below shows your family’s monthly expenses by category.

Expense Fixed or Variable Expense? Average Monthly Cost Yearly Cost Percent of Yearly Budget (Rounded)

Income Tax Fixed $400 $4,800 "$4,800" /"$48,900" " = 9.8%"

Housing $950

Food $7,800

Clothing Variable $75

Transportation Fixed $6,000

Insurance & Medical $1,200

Entertainment $100 $1,200

Emergency Fund Fixed $50

Savings for College Fixed $600

Savings for Retirement $100 $1,200

Total $4,075 $48,900 100%

Fixed expenses are expenses that do not change from month to month, and variable expenses are expenses that can fluctuate from month to month. Complete the second column of the chart by determining if each expense is fixed or variable. (10 points – 2 points each)

Choose an example of a fixed expense and an example of a variable expense, and explain why they are classified that way. (4 points)