Fixed and Variable Expenses

Transcription

1 ? Name 18.1 Essential Question Fixed and Variable Expenses What is the difference between fixed and variable expenses? Personal Financial Literacy lso 4.4., 4.4.H MTHEMTIL PROESSES 4.1., 4.1. Money that you need to pay for electricity or phone service are your expenses. Expenses that occur regularly and the amount does not change are fixed expenses. Expenses in which the amount does change based on need or choice are variable expenses. Unlock the Problem Erin has some fixed and variable expenses. She pays $23.75 every 12 weeks for the newspaper to be delivered to her home every day. She and her family like to eat out. Monday night, Erin spent $45.78 to eat a meal at Restaurant. Tuesday night, she spent $58.12 for a meal at Restaurant. Wednesday night, she spent $37.64 for a meal at Restaurant. Example 1 omplete. Erin s is a expense because she pays the same amount and the cost does not change. The money Erin spends on meals is a expense because the amount depending on which restaurant she goes to or the type of meal she buys. Example 2 Find the amount Erin spends on fixed expenses for 24 weeks. Erin pays $ every 12 weeks for the newspaper. In 24 weeks, she pays $ + $ = $. Erin spends $ in fixed expenses for 24 weeks. Math Talk Mathematical Processes What other fixed expenses might a person have? Module

2 Example 3 Solve. How much does Erin spend on variable expenses? + + = Monday night Tuesday night Wednesday night Total spent So Erin spent $ on variable expenses. Share and Show 1. etsy pays a trash service to pick up the household trash once a week. The cost is $23 a month. Trash pick-up is a expense. In 6 months, the family pays 6 =. 2. Mrs. eyer goes grocery shopping once a week. In one month she spent $99.65, $122.56, $130.45, and $145. What was the total monthly expense? Grocery bills are a expense. In a month, Mrs. eyer spent for groceries. 3. Write Math Use the list at the right. Sort the topics into fixed expenses and variable expenses. hoose one and explain why you placed it there. clothing car payments vacation groceries entertainment electric bills cell phone house payments gasoline loan payments Fixed Expenses Variable Expenses Math Talk Mathematical Processes Explain why some of the topics could be either fixed or variable expenses. 642

3 Name Problem Solving Use the numbers in the picture for How much has the price of gas increased from the lowest to the highest price shown? 5. Multi-Step Maya filled her car with gas once at each price shown. Her gas tank holds 15 gallons. Estimate the amount that she spent to fill her tank these four times. Is this a fixed or variable expense? 6. pply 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. What was the total Mario paid in car payments this year? re the payments Mario paid the first 8 months a fixed or variable expense? Write Math Show Your Work 7. Multi-Step Mrs. Xavier buys 1 or 2 books a month for $13.99 each. magazine subscription costs her $19.99 a year. She buys the Sunday paper for $2.05 each week. Estimate the most she could spend for her reading material in a year. 8. ommunicate Wendy s bakery business has fixed and variable expenses. Her gas and electric bills cost $500 one month. The ingredients cost $700 that month. She pays each of 2 workers $10 an hour to work 40 hours a week. Explain how you can find her total business expenses for a month. Module 18 Lesson 1 643

4 aily ssessment Task Mathematical Processes Fill in the bubble completely to show your answer. 9. Lexi is taking 3 courses at ommunity ollege. She pays $835 for each college course. She spends about $45 a week for 20 weeks to drive to school. How much does she spend on fixed expenses? $2,505 $900 $2,400 $2, 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 club membership the house payment the car payment the cost of food 11. Multi-Step Josh has a new cell phone plan. He gets unlimited voice calls and text messages to other devices in his area for $35 a month. Voice calls outside of his area cost $0.10 a minute and text messages cost $0.99 a message. What is Josh s bill if he uses 10 minutes for calls and makes one text outside his area? $35.10 $35.00 $36.99 $35.99 TEXS Test Prep 12. ara makes bracelets and sells them in her shop. Which is a fixed expense for ara s business? the cost of the beads 644 the cost of the string the cost of advertising rent for her shop

5 Homework and Practice Name Personal Financial Literacy lso 4.4., 4.4.H MTHEMTIL PROESSES 4.1., Fixed and Variable Expenses 1. ruce buys 7 cans of dog food a week and a bag of dog food every 4 weeks. ans of dog food cost $1.29 each. bag of dog food costs $ og food is a _ expense. In 4 weeks, ruce spends 28 _ + _ = _ for dog food. 2. Use the list of Expenses for og Owners. Sort the expenses into fixed expenses and variable expenses. hoose one expense and explain why you put it where you did. Expenses for og Owners food treats toys bed collar and leash veterinary care daily dog walking boarding Training lasses Fixed Expenses Variable Expenses Problem Solving 3. Gretchen has a cat. She buys a bag of litter every month. Litter costs $38.59 a bag. How much will litter for a year cost? Is the expense fixed or variable? 4. In March, Gretchen bought a brush and a toy for her kitten. The brush cost $6.79. The toy cost $3.88. In pril, she bought a cat carrier for $ How much did she spend for these items? re the expenses fixed or variable? Explain. Module 18 Lesson 1 645

6 Lesson heck TEXS Test Prep Fill in the bubble completely to show your answer. 5. Mark pays a gardener $100 each week. He bought a fence for the garden and 2 flats of plants. He also bought a shovel and a hoe. Which expense is fixed? gardener plants fence shovel 6. Leslie rides the bus to work and back 5 days a week. The bus costs $1.25 each way. Sometimes she buys a newspaper to read on the bus. The newspaper costs $0.75 a day. How much does she spend for fixed expenses every week? $6.25 $12.50 $18.75 $ Every month, Wesley writes checks to pay each of the bills listed below. Which is a variable expense? rent cable television electricity gym membership 8. Which of Victoria s monthly car expenses is fixed? car payment gas bridge tolls parking 9. Multi-Step store owner pays $1,200 each month for rent. She pays the clerk who works in the store $15 an hour. The clerk works 60 hours each month. What is the total of the monthly fixed expenses? $2, Multi-Step Jenny spends $2.20 for a school lunch every day. She also buys a muffin at the bakery every day on her way home from school. The muffin costs $1.25. What are Jenny s fixed expenses for a 5-day school week? $ $1,290 $1,800 $3,000 $15.75 $22.25 $17.25