A. $155,000
B. $125,000
C. $135,000
D. $145,000
✅ The correct answer is option B.
Total variable cost = Quantity of units sold × Variable cost per unit
= 5000 × $25 = $125,000.
Total variable cost = Quantity of units sold × Variable cost per unit
= 5000 × $25 = $125,000.