Determine Whether the Spending Pattern Described Is At, Above, or Below

question 34

Multiple Choice

Determine whether the spending pattern described is at, above, or below the national average. Assume that any salariesor wages are after tax.
-A single 31-year old man with a monthly salary of $3100 spends $560 on food.

• A)below average
• B)at average
• C)above average

---

Definitions:

Variable Cost

Costs that vary directly with the level of production output or business activity, such as materials and labor directly involved in producing a product.

Inflationary Price Increase

A rise in prices across an economy, often due to an increase in the money supply or demand outstripping supply, reducing the purchasing power of money.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus cost of goods sold.

Fixed Cost Per Unit

The total fixed costs divided by the number of units produced, representing the cost allocated to each unit.