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Wical Rental Management Services manages four apartment buildings, each with a different owner. Wicals CEO has observed that the apartment buildings with more expensive rental rates tend to require more of her time and also the time of her staff. The four apartment buildings incur a total annual operating expense of $7,355,733, and these operating expenses are traced directly to the apartment buildings for the purpose of determining the profit earned by the building owners. The annual management fee that Wical earns is based on a percentage of total annual operating expenses and is negotiated each year. For the current year, the fee rate is 6%, and Wical has the following information for current-year average rental rates and occupancy rates:

Apartment Complex	Number of Units			Average Occupancy			Average Rent
Cape Point		100			87	%	$	1,995
Whispering Woods		250			79			1,395
Hanging Rock		200			73			1,095
College Manor		350			84			995
Total		900

For the current year, Wical must choose between the number of units in each complex, the average occupancy, or the total annual rental revenue in each complex to allocate the management fee.

Required:

1. How much of the management fee would be charged to Cape Point under each of the three allocation bases (number of units, average occupancy, and total annual rental revenue, respectively)? (Do not round your intermediate calculations. Round your final answers to whole dollar amounts.)

multiple choice

• $35,814; $85,921; $106,423

• $49,038; $118,876; $84,974

• $1,850,170; $2,443,585; $1,957,442

• $54,563; $118,014; $86,828

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