Question

Susie operates a restaurant in the ski resort town of Asvail. She has decided to group her Other Expenses categories in terms of either fixed expenses or variable expenses. Place an X in the Variable Expense column for those expenses that vary with sales volume. For expenses that do not vary with sales, place an X in the Fixed Expense column.
Other Expenses Variable Expense Fixed Expense Linen rental Plano rental Ice
Insurance Pension plan payments Snow shoveling fees (parking lot) Paper products Kitchen equipment lease (mixer)
Long-term debt payment Real estate tax

Answer 1

Expenses including those for linen service, ice, and paper goods might fluctuate depending on demand. Other variables are constants. No change occurs to it. This is further explained below.

What is Susie's operation?

Generally, Fixed expenditures, in contrast to the more unpredictable variable costs like advertising, happen regularly at the same time each year regardless of fluctuations in revenue or other variables. It doesn't get the performance bus.

Here, we are given with table.

$\begin{tabular}{|c|c|c|}Other Expenses & Variable Expense & Fixed Expense. \\ Linen rental & X & \\ piano rental & & X \\ ice & X & X \\insurance & & X \\ Pension plan & & X \\Snow shoveling dees cparkinglot) & & \\Paper products & X & X \\ Kituen equipment & & X \\ lease (mixer) & & \\Longterm debt. & & \\ Realestate tax. & & \\\end{tabular}$

In conclusion,

• Linen rental, ice, and Paper Products are Variable expenses because it is based on requirement
• Others are fixed by other factors. it's not affected

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