Fixed & Variable Expenses / calculating profit

What is the correct equation for finding profit? (Remember PIE)

• Income = Profit- Expenses

• Profit = Income + Expenses

• Profit = Income - Expenses

• Expenses = Income - Profit

What is income?

• Money coming IN to your pockets.

• Money that you MAKE.

• Money that stays the SAME every month.

• Money that you spend, so it LEAVES your pockets.

What are expenses?

• Money coming IN to your pockets.

• Money that you MAKE.

• Money that stays the SAME every month.

• Money that you spend, so it LEAVES your pockets.

What is profit?

• Money coming IN to your pockets.

• Money that you MAKE.

• Money that stays the SAME every month.

• Money that you spend, so it LEAVES your pockets.

What are variable expenses?

• Expenses that stay the SAME each week, month, year.

• Expenses that CHANGE each week, month, year.

What are fixed expenses?

• Expenses that stay the SAME each week, month, year.

• Expenses that CHANGE each week, month, year.

Joana bought 3 new shirts for $5 each. She sells each shirt for $15. What is Joana’s profit?

• Joana's profit is $15.

• Joana's profit is $30.

• Joana's profit is $45.

• Joana's profit is $60.

Answer explanation

Remember PIE.

Profit = Income - Expenses

Profit = 45 - 15

Joana profit is $30.00

Some people borrow money to buy a car. They have to make car payments to pay back the money they borrowed. What kind of expenses are most car payments?

• Variable expenses, because the amount changes every month.

• Variable expenses, because the payment is not due every month.

• Fixed expenses, because the amount is usually the same every month.

• Fixed expense, because the car is usually paid for after one month.

Leonardo has 24 Pokémon cards he bought for $10.00. He decided to sell each card for $2 each. What was Leonardo's profit?

• Leonard's profit was $38.

• Leonard's profit was $20.

• Leonard's profit was $58.

• Leonard's profit was $48.

Answer explanation

Remember PIE.

Profit = Income - Expenses

Profit = 48 - 10

Leonard's profit is $38.00

Which expenses are FIXED expenses?

• Rent, car payment, Disney+ subscription.

• All of them

• Groceries, Movie tickets, light bill

• None

Answer explanation

Remember, variable expenses, vary, they change every year, month, week or day.