Bayside Apartments is a 1,000-unit apartment complex. When the apartments are 90% occupied, monthly operating...
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Bayside Apartments is a 1,000-unit apartment complex. When the apartments are 90% occupied, monthly operating costs total $237,500. When occupancy dips to 80%, monthly operating costs fall to $231,000. 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 60% 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 60% ? Let's begin by determining the formula that is used to calculate the variable cost (slope). 1+[=Variablecost(slope) Now determine the formula that is used to calculate the fixed cost component. Use the high-low method to determine Bayside's operating cost equation. y=x+ Assuming the same relevant range, what should the owner expect her operating costs to be if occupancy falls to 60%? (Round your answer to the nearest whole dollar.) The owner should expect her operating costs to be , if occupancy falls to 60%
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