Toledo Toy Company incurred the following costs during 20x4. The company sold all of its products manufactured during the year.

Direct Materials	5,000,000
Direct Labor	3,500,000
Manufacturing Overhead:
Utilities (primarily electricity)	250,000
Depreciation Plant and Equipment	350,000
Insurance	260,000
Supervisory Salary	470,000
Property Taxes	330,000
Selling Cost:
Advertising	315,000
Sales Commission	145,000
Administrative Costs:
Salaries of Top management	580,000
Office Supplies (fixed)	70,000
Depreciation on Building and Equipment	140,000

During 20x4, the company operated at about half of its capacity, due to a slowdown in the economy. Prospects for 20x5 are slightly better. Jared Lowes, the marketing manager, forecasts a 30 percent growth in sales over the 20x4 level

How much is the TOTAL VARIABLE COST of Toledo Toy Company in 20x4?

Group of answer choices

8,895,000

8,500,000

8,750,000

8,645,000