Lakeside part ments s a 800-unit apartment complex. When he apartments are 90% occupied, monthly operating costs o a $218 64 When occupency dps?80%, month operating costs to 68 The owner of hea artment complex 1s worried because many of the apartment residents work at a nearby manufacturing plant that has just announced it wil close 1n three months. The apartment owner fears that occupancy of her apartments will drop to 70% f 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 70%? Let's begin by determining the formula that is used to calculate the variable cost (slope). Change in costChange in volumeVariable cost (slopo) Now determine the formula that is used to calculate the fixed cost component Total operating cost -Total variable cost Fixed cost Use the high-low method to determine Lakeside's operating cost equation