Question

he Lakeview Apartment 1.000 untentore When the two months 22.00. When w complex worried because many of the artrons work atanatyanacang pantas around wie ne mor a mento s the band move way. As the same what can the owner expect her operating to be e ponyer were Lets begin by deforming the formula that is used to calculate the cool spel

Answer 1

Variable Cost (Slope) = Change in Costs / Change in occupancy
= ($222400-216400) / (900-800) = $60 per unit
Fixed Costs = $222400 - 900 x 60 = $168400

Operating costs for 55% occupancy = $168400 + 550 x 60 = $201400