Problem
i. Explain the difference between a fixed and variable expense. Provide at least 5 examples of each. Discuss ways you can account for both in budgeting and how to control expenses in general
ii. Karen owns 300 shares of stock at the price of $90 a share and she would like to sell it now for $130 a share. She is in the 25% tax bracket. She has owned it for 13 months. How much will Karen realize if she sells the stocks? How much would she have earned if she sold it at 9 months, assuming her bracket wouldn't change?