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Seaside Apartments is a 900-unit apartment complex. When the apartments are 90% occupied, monthly operating costs total $224,980 When occupancy dips to 80%, monthly
Seaside Apartments is a 900-unit apartment complex. When the apartments are 90% occupied, monthly operating costs total $224,980 When occupancy dips to 80%, monthly operating costs fall to $219,760. 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 56% 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) Variable cost (slope) Now determine the formula that is used to calculate the fixed cost component Fixed cost CED Use the high-low method to determine Seaside's operating cost equation y= Assuming the same relevant range, what should the owner expect her operating costs to be it occupancy falls to 50%? (Round your answer to the nearest whole dollar) The owner should expect her operating costs to be it occupancy fals to 55%
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