1. Average Monthly Expenditures pp. 146-148 3-1 SECTION

2. Click to edit Master text styles Second level Third level Fourth level Fifth level 2 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-1, Slide 2 of 17 3-1 Section Objective Compute: average monthly expenditure

3. Click to edit Master text styles Second level Third level Fourth level Fifth level 3 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-1, Slide 3 of 17 3-1 recordkeeping (p. 146) Keeping track of monthly expenses by recording them in a budget sheet. expenditures (p. 146) Items you spend money on. Key Words to Know

4. Click to edit Master text styles Second level Third level Fourth level Fifth level 4 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-1, Slide 4 of 17 3-1 budget sheet (p. 146) A record of monthly expenditures. Key Words to Know

5. Click to edit Master text styles Second level Third level Fourth level Fifth level 5 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-1, Slide 5 of 17 3-1 Average Monthly Expenditure = Sum of Monthly Expenditures Number of Months Formula

6. Click to edit Master text styles Second level Third level Fourth level Fifth level 6 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-1, Slide 6 of 17 3-1 What’s the importance of Classified’s keeping a budget? A Rock Star’s Lyrical Leverage p. 146

7. Click to edit Master text styles Second level Third level Fourth level Fifth level 7 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-1, Slide 7 of 17 3-1 Sue and Bob Miller keep records of their expenditures. They want to know how much they spend each month (on the average). Below are their records for three months. What is their average monthly expenditure? Example 1

8. Click to edit Master text styles Second level Third level Fourth level Fifth level 8 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-1, Slide 8 of 17 3-1 Figure 3.1

9. Click to edit Master text styles Second level Third level Fourth level Fifth level 9 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-1, Slide 9 of 17 3-1 Figure 3.1 (cont.)

10. Click to edit Master text styles Second level Third level Fourth level Fifth level 10 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-1, Slide 10 of 17 3-1 Step: Compute the average monthly expenditure. A. Find the sum of monthly expenditures. $1,368.22 + $1,365.00 + $1,337.21 = $4,070.43 B. Divide the sum by the number of months. Sum of Monthly Expenditures ÷ Number of Months $4,070.43 ÷ 3 = $1,356.81 Example 1 Answer

11. Click to edit Master text styles Second level Third level Fourth level Fifth level 11 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-1, Slide 11 of 17 3-1 Use the Millers’ records of monthly expenditures to find the average monthly amount spent for the electric bill? Example 2

12. Click to edit Master text styles Second level Third level Fourth level Fifth level 12 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-1, Slide 12 of 17 3-1 Step: Compute the average monthly expenditure. A. Find the sum of monthly expenditures. $71.47 + $73.56 + $51.42 = $196.45 B. Divide the sum by the number of months. Sum of Monthly Expenditures ÷ Number of Months $196.45 ÷ 3 = $65.48 Example 2 Answer

13. Click to edit Master text styles Second level Third level Fourth level Fifth level 13 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-1, Slide 13 of 17 3-1 Amy and Todd Irvings’ monthly expenses for June, July, and August are as follows: June, $3,260; July, $3,537; and August, $3,430.. Find the average monthly expenditure for the Irvings. Practice 1

14. Click to edit Master text styles Second level Third level Fourth level Fifth level 14 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-1, Slide 14 of 17 3-1 $3,409 Practice 1 Answer

15. Click to edit Master text styles Second level Third level Fourth level Fifth level 15 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-1, Slide 15 of 17 3-1 The Benson family has grocery bills in the months of April through July for the following amounts: $90.85; $106.24; $79.87; and $101.16. What is their average monthly expense for groceries? Practice 2

16. Click to edit Master text styles Second level Third level Fourth level Fifth level 16 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-1, Slide 16 of 17 3-1 $94.53 Practice 2 Answer

17. Average Monthly Expenditures 3-1 END OF SECTION