Question

household monthly expenses can be divided into two types of costs:
fixed costs - do not change
variable costs - change
identify the following household expenses as fixed (f) or variable (v) or possibly both (fv):
car payment
groceries
heating
water usage
hydro electricity
mortgage or rent payment
recreation
car maintenance
gasoline
home phone
cell phone
furniture/appliances
clothing/shoes
charitable donations
internet usage
cable/satellite
household supplies
personal care
property tax

1. monthly budgeting

fill in the missing values in the right column:
gross income
subtract deductions
ei (2%)
cpp (5%)
income tax (20%)
total deductions
net income (or take - home pay)
subtract expenses
fixed
(list all expenses that do not change)
variable
(list all expenses that may change)
total expenses
balance (or savings)
$3000
1100
800

Explanation:

Step1: Calculate EI deduction

EI deduction = 2% of Gross Income. Let Gross Income be \( G = 3000\). EI = \(0.02\times3000=60\)

Step2: Calculate CPP deduction

CPP deduction = 5% of Gross Income. CPP=\(0.05\times3000 = 150\)

Step3: Calculate Income Tax deduction

Income Tax deduction = 20% of Gross Income. Income Tax=\(0.2\times3000=600\)

Step4: Calculate Total Deductions

Total Deductions = EI + CPP+Income Tax. Total Deductions=\(60 + 150+600=810\)

Step5: Calculate Net Income

Net Income=Gross Income - Total Deductions. Net Income=\(3000 - 810=2190\)

Step6: Calculate Total Expenses

Total Expenses=Fixed + Variable. Let Variable be \(V\). We know Net Income - Total Expenses=Balance. But we are not given Balance. However, if we assume we just need to fill the table as per the structure:
Fixed expenses (from the first part: Car payment (F), Mortgage or Rent Payment (F), Home Phone (if fixed - line F), Cable/Satellite (F), Property Tax (F)). Variable expenses (Groceries (V), Heating (V), Water Usage (V), Hydro Electricity (V), Recreation (V), Car Maintenance (V), Gasoline (V), Cell Phone (V), Furniture/Appliances (V), Clothing/Shoes (V), Charitable Donations (V), Internet Usage (if metered V), Household Supplies (V), Personal Care (V)). Total Expenses=800 + V (but since we are not given V value for the second table part in terms of calculation from the first, we just follow the formulaic steps for deductions)

Answer:

EI: \(60\), CPP: \(150\), Income Tax: \(600\), Total Deductions: \(810\), Net Income: \(2190\)