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You own a large building with 3 0 0 small salon studio that you lease at a rate of $ 7 5 0 per month
You own a large building with small salon studio that you lease at a rate of $ per month per unit. When the studios are occupied, monthly operating costs total $ $ of which are variable costs. A nearby university is opening up and there is an expected demand increase for your studios. You expect to be able to operate at capacity. Based on the cost behavior of the current studio rental business, what is the predicted monthly operating income when of units are leased out?
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