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You own a 500-unit apartment complex and charge a monthly rental rate of $1,200 per unit. When the apartments are 96% occupied, monthly operating costs

You own a 500-unit apartment complex and charge a monthly rental rate of $1,200 per unit. When the apartments are 96% occupied, monthly operating costs total $300,000, $240,000 of which are variable costs. A nearby manufacturing plant has just announced that it is closing in the upcoming year. As a result, you anticipate occupancy will decrease to 85%. Using your knowledge of cost behavior, what is your predicted monthly operating income

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