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You own a 500-unit apartment complex and charge a monthly rental rate of $1,500 per unit. When the apartments are 75% occupied, monthly operating costs
You own a 500-unit apartment complex and charge a monthly rental rate of $1,500 per unit. When the apartments are 75% occupied, monthly operating costs total $304,875, $60,000 of which are fixed costs. A nearby manufacturing plant has just announced that it is expanding its operations in the upcoming year. As a result, you anticipate occupancy will increase by 15%. Using your knowledge of cost behavior, what is your predicted monthly operating costs? O A. $237,500 OB. $358,125 OC. $353,850 D. $321,150 E. None of the above
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