For a CAM expense of $30,000 with a 70% occupancy, what is the variable operating expense shown on the Cash Flow report?

To determine the variable operating expense shown on the Cash Flow report from a CAM expense of $30,000 at 70% occupancy, one must first understand that variable operating expenses typically correlate with the level of occupancy.

In this case, the CAM (Common Area Maintenance) expense is fully based on the occupancy of the property. With 70% occupancy, only 70% of the total CAM expense will incur, leading to the calculation:

1. Calculate 70% of the CAM expense:

(30,000 \times 0.70 = 21,000)

This means that at 70% occupancy, the variable portion of the operating expenses would be $21,000 due to the allocation of costs to the occupied space.

The other options do not correctly reflect this relationship between occupancy and CAM expenses under the variable cost structure. Therefore, the correct answer points to the understanding of how occupancy levels affect operating expenses directly related to common area maintenance.