Mr. Jones has a monthly income of $5,600. He wants to identify his monthly variable expenses to see if they are more than 38% of his monthly income. Mr. Jones has fixed expenses totaling $2,912 and his net income is 12% of his monthly income. Determine the total of Mr. Jones's variable expenses and if they are more than 38% of his monthly income.

The variable expense is 36% of monthly expense i.e $2,016.

Explanation:

Data provided in the question:

Monthly income of Mr. Jones = $5,600

Fixed expenses = $2,912

Net income = 12% of monthly income = 0.12 × $5,600 = $672

Now,

Variable expense  = Monthly income - Fixed expenses - Net income

= $5,600 - $2,912 - $672

= $2,016

Percent of variable expense =

Hence, the variable expense is 36% of monthly expense i.e $2,016.

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