Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Seaside Apartments is a 800 -unit apartment complex. When the apartments are 90% occupied, monthly operating costs total $221,080. When occupancy dips to 80%, monthly
Seaside Apartments is a 800 -unit apartment complex. When the apartments are 90% occupied, monthly operating costs total $221,080. When occupancy dips to 80%, monthly operating costs fall to $215,960. 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). Now determine the formula that is used to calculate the fixed cost component. 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 55% ? (Round your answer to the nearest whole dollar.) The owner should expect her operating costs to be if occupancy falls to 55%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started