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Seaside Apartments is a 5 0 0 - unit apartment complex. When the apartments are 9 0 % occupied, monthly operating costs total $ 2

Seaside Apartments is a 500-unit apartment complex. When the apartments are 90% occupied, monthly operating costs total $205,250. When occupancy dips to 80% monthly operating costs fall to $202,000. 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).
Change in volume = Variable cost (slope)
Now determine the formula that is used to calculate the fixed cost component.
= Fixed cost
Use the high-low method to determine Seaside'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%.
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