Question

Sam's total expenses last month were $1840. What was his total variable cost for last

Answer 1

Answer:

$1500

Step-by-step explanation:

It is given that

Rent  = $100

Groceries and drinks = $1000

Insurance premiums   = $10

Loan interest payment  =$30

Clothes  = $200

Utilities  = $300

Home security fee  = $200​

Fixed cost are costs that does not vary and variable cost are costs that vary with goods and services.

In the given problem, rent , insurance premiums, loans interest payment ad home security fee are fixed cost.

Groceries and drinks, clothes and utilities are variable cost.

So, total variable cost for last month is

$\text{Total variable cost}=\ 1000+\ 200+\ 300=\ 1500$

Therefore, total variable cost for last month is $1500.