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having trouble on this one Bayview Apartments is a 800 -unit apartment complex. When the apartments are 90% occupied, monthly operating costs total $217,200. When
having trouble on this one
Bayview Apartments is a 800 -unit apartment complex. When the apartments are 90% occupied, monthly operating costs total $217,200. When occupancy dips to 80%, monthly operating costs fall to $212,400. 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 65% if residents lose their jobs and move away. Assuming the same relevant range, what can the owner expect her operating costs to be if occupancy falls to 65% ? Let's begin by determining the formula that is used to calculate the variable cost (slope) = Variable cost (slope) Now determine the formula that is used to calculate the fixed cost component Use the high-low method to determine Bayview's operating cost equation. y=x+ Assuming the same relevant range, what should the owner expect her operating costs to be if occupancy falls to 65% ? (Round your answer to the nearest whole dollar.) The owner should expect her operating costs to be if occupancy falls to 65% Step by Step Solution
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