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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

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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 worned because many of the apartment residents work at a nearby manufacturing plant that ha 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 it occupancy fails to 55%2 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 Fund cost Use the high-low method to determine Lakeview's operating cost equation yo

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