What is the total CAM expense amount for a property with an annual expense of $30,000 and 60% fixed?

In this scenario, to determine the total CAM (Common Area Maintenance) expense amount for a property with an annual expense of $30,000 and 60% being fixed expenses, it’s essential to focus on the calculation of the variable component.

Fixed expenses, which amount to 60% of the total annual expenses, would be calculated as follows:

1. Calculate the fixed portion:

60% of $30,000 = 0.60 * $30,000 = $18,000.

2. The remaining portion of the annual expense is variable, which can be understood as the total expense less the fixed portion:

Variable portion = Total expense - Fixed expense = $30,000 - $18,000 = $12,000.

The total CAM expense amount represents the entire annual expense amount for the property, which remains $30,000. Therefore, the correct answer is indeed the total annual CAM expense, confirming that the total is $30,000 regardless of how it is allocated between fixed and variable expenses.

The choices that suggest lower amounts represent incorrect calculations since they do not account for the full annual expense, which should always reflect the total liability to the property.