Consider a residential property with the following characteristics:

The building has 300 units.

Each unit is rented out an at effective gross income of $1300 per month (effective rent per suite).

Variable expenses per unit = $410 per month.

Fixed expenses (for whole property) = $87000 per month

The ratio of variable expenses to fixed expenses is constant for each unit and over time.

Ignore collection losses in this calculation.



What is the degree of operating leverage when n= 110?

Answer rating: 100% (QA)

To calculate the degree of operating leverage DOL we first need to calculate the operating income OI ... View the full answer