Lakeview Apartments is an 800-unit apartment complex. When the apartments are 90% occupied, monthly operating costs total $220,040. When occupancy dips to 80%, monthly operating costs fall to $215,480. 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 55% 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 55%? Let's begin by determining the formula that is used to calculate the variable cost (slope). Change in cost Change in volume =Variable cost (slope) 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 Lakeview's operating cost equation. y= x+