Question: Bayview Apartments is a 500 unit apartment complex When the apartments

Bayview Apartments is a 500-unit apartment complex. When the apartments are 90% occupied, monthly operating costs total $200,000. When occupancy dips to 80%, monthly operating costs fall to $197,000. The owner of the apartment complex is worried because many of the apartment residents work at a nearby manufacturing plant that has just announced that 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%?

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  • CreatedApril 30, 2015
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