Final answer:
In a flexible budget, total fixed costs remain constant when the sales volume changes, unlike total variable costs, total sales revenue, and total contribution margin which vary based on output.
Step-by-step explanation:
The question relates to the concepts of a flexible budget within managerial accounting and which components of it change with a change in sales volume. Within a specified relevant range, when the sales volume changes, the total fixed costs of a flexible budget remain constant. Fixed costs do not vary with production volume; they are incurred regardless of the amount of goods or services produced. For example, rent, salaries, and insurance premiums tend to stay the same regardless of the level of production. In contrast, total variable costs change in direct proportion to changes in output, and total sales revenue and total contribution margin will also change based on the sales activity. Fixed costs such as the mentioned $160, remain even at zero production.