[amp_mcq option1=”$5,000,000″ option2=”$3,000,000″ option3=”$2,000,000″ option4=”$1,000,000″ correct=”option1″]
The correct answer is A. $5,000,000.
The flexible budget variable is the total amount of variable costs that would be incurred at a given level of output. In this case, the level of output is 5000 units and the per unit price is $60. Therefore, the total variable cost is $5,000,000.
Option B is incorrect because it is the total amount of fixed costs. Option C is incorrect because it is the total amount of variable costs at a level of output of 3000 units. Option D is incorrect because it is the total amount of variable costs at a level of output of 1000 units.