Which of the Following Is a Fixed Expense for Maria’s Sandwich Food Truck?

Running a sandwich food truck involves both fixed and variable expenses. Fixed expenses are the costs that stay the same every month, no matter how much food is sold. These are different from variable expenses, which can change depending on how busy the food truck is. In this blog post, we will look at which of the following is a fixed expense for Maria’s sandwich food truck.

What Are Fixed Expenses?

Fixed expenses are costs that do not change based on how many sandwiches Maria sells. They stay the same each month and are usually easy to plan and budget. These costs are important because Maria must pay them even if she has a slow month with fewer customers.

What Are Variable Expenses?

Variable expenses are different. They change depending on how much Maria works or sells. For example, if Maria sells more sandwiches, she will need to buy more ingredients. That means her costs will go up. These are variable expenses because they depend on the level of business activity.

Fixed expenses stay the same each month, while variable expenses change based on activity. Learn more here.

The Question and Options

Let’s take a look at the question and the options provided.

Which of the following is a fixed expense for Maria’s sandwich food truck?

A) Kitchen appliances and other equipment needed to conduct her business
B) Cellphone bill
C) Gas
D) All of the above

Correct Answer: D) All of the above

Let’s explain why each option counts as a fixed expense.

• Kitchen appliances and equipment: These are long-term items used to run the business. The cost of buying them is usually paid once, but the depreciation or value loss over time is considered a fixed cost. This cost stays the same every month.

• Cellphone bill: If Maria has a fixed phone plan, her cellphone bill will be the same each month. It does not change depending on how many sandwiches she sells.

• Gas: While gas use can sometimes vary, in many cases it stays around the same level month to month, especially if Maria has a regular route or work schedule. So it is considered a fixed expense in this situation.

Which of the following is a fixed expense for Maria’s sandwich food truck?

Options:

• Salaries for her employees

• Truck insurance

• Advertising

• All of the above

Correct Answer: All of the above

Explanation:

All the listed options are considered fixed expenses because they generally remain consistent over a set period, regardless of how many sandwiches Maria sells:

• Salaries for her employees: If Maria pays employees a fixed salary (not hourly), it stays the same each month.

• Truck insurance: Insurance payments are usually monthly or yearly and do not change based on business activity.

• Advertising: If Maria has a fixed budget for advertising (like paying a monthly fee for a billboard or online ads), this is also a fixed cost.

So, “All of the above” is the correct choice.

Why This Matters

Knowing which expenses are fixed helps Maria plan her budget. Fixed costs give her a clear idea of the minimum money she needs each month to keep her business running. Even if sales are low, she still has to pay these costs.

Conclusion

What do all these expenses have in common? They stay the same each month, no matter how many sandwiches Maria sells. Why is that important? Knowing her fixed expenses helps Maria plan her budget and make sure her food truck business stays on track.