4.10A fixed and variable expenses

The Brown family orders pizza from Eat Around Pizza on special occasions. Sometimes they add a side of wings, and sometimes they don't.

Is the money the Brown family spends at Eat Around Pizza a fixed expense or a variable expense?

• Fixed Expense

• Variable Expense

Lillian spent $53 at the grocery store last week. When she went grocery shopping this week, Lillian only spent $39.

Is the money Lillian spends grocery shopping a fixed expense or a variable expense?

• Fixed Expense

• Variable Expense

The Jones family has cable television at their house so they can watch their favorite shows. They pay $85 a month for the cable television.

Is the money the Jones family spends on cable television a fixed expense or a variable expense?

• Fixed Expense

• Variable Expense

The Sterling family bought a new camper to tour some national parks. They took out a loan to buy the camper. Now, they pay the bank $350 each month for the loan.

Is the Sterling family's loan payment a fixed expense or a variable expense?

• Fixed Expense

• Variable Expense

What are fixed expenses?

• Irregular expenses that change from week to week or month to month

• The amount of money in your bank account

• The amount of cash in your purse or wallet

• Expenses that stay the same from week to week or month to month

What are variable expenses?

• Irregular expenses that change from week to week or month to month

• The amount of money in your bank account

• Costs that do not fluctuate from week to week or month to month

• The amount of cash in your purse/wallet

Is a cell phone bill a fixed or variable expense?

• Fixed

• Variable

• Both fixed and variable

• Neither fixed nor variable

A loan payment is a fixed expense.

• True

• False

Every month, Jack’s mother pays the following expenses: the house payment, the club membership, the car payment, and the cost of food. Which is a variable expense?

• the house payment

• the cost of food

• the club membership

• the car payment

Mario paid off his car loan this year. His payments were $259 a month for each of the first 8 months. The last payment, in the ninth month, was $125. Are the payments Mario paid during the first 8 months fixed or variable?

• Fixed, because the amount did not change from month to month

• Variable, because the amount changed from month to month