Mr. Jones has a monthly income of $5,600. He wants to identify his monthly variable expenses to see if they are more than 38% of his monthly income. Mr. Jones has fixed expenses totaling $2,912 and his net income is 12% of his monthly income. Determine the total of Mr. Jones's variable expenses and if they are more than 38% of his monthly income.

Mr. Jones’s net income is 12% of $5,600, or $672. That leaves $5,600 − $672 = $4,928 for expenses; subtracting the $2,912 in fixed expenses gives $2,016 in variable expenses. Since 38% of $5,600 is $2,128, his variable expenses do not exceed 38% of his income. The correct choice is D: $2,016 and do not exceed 38%.

AI-written and checked against the verified answer.