Bayview Apartments is a 750- unit apartment complex. When the apartments are 90% occupied, monthly operating costs

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Bayview Apartments is a 750- unit apartment complex. When the apartments are 90% ­occupied, monthly operating costs total $ 217,150. When occupancy dips to 80%, monthly operating costs fall to $ 212,800. The owner of the apartment complex is worried because many of the apartment residents work at a nearby manufacturing plant that has just announced it will close in three months. The apartment owner fears that occupancy of her apartments will drop to 70% if residents lose their jobs and move away. Assuming the same relevant range, what should the owner expect operating costs to be if occupancy falls to 70%?

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Managerial Accounting

ISBN: 978-0133428377

4th edition

Authors: Karen W. Braun, Wendy M. Tietz

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