MaryKay wants to identify her monthly variable expenses to see if they are more than 40% of her monthly income. MaryKay's monthly income is $3,800. Her net income is 7% of her monthly income and her fixed expenses are $1,824. Determine the total of MaryKay's variable expenses and if they are more than 40% of her monthly income.

First find 7% of MaryKay’s $3,800 monthly income: 0.07 × $3,800 = $266. Subtract that amount and her $1,824 in fixed expenses from her income: $3,800 − $266 − $1,824 = $1,710 in variable expenses. Forty percent of her income is $1,520, so $1,710 is more than 40%. The correct choice is the one stating that her variable expenses total $1,710 and exceed 40% of her monthly income.

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