Question: I will leave a Like, please help! You own a large building with 300 small salon studio that you lease at a rate of $750

I will leave a Like, please help! You own a large

I will leave a Like, please help!

You own a large building with 300 small salon studio that you lease at a rate of $750 per month per unit. When the studios are 80% occupied, monthly operating costs total $150,000,$90,000 of which are variable costs. A nearby university is opening up and there is an expected demand increase for your studios. You expect to be able to operate at 90% capacity. Based on the cost behavior of the current studio rental business, what is the predicted monthly operating income when 90% of units are leased out? A. $30,000 B. $46,875 C. $41,250 D. $161,250 E. Cannot determine from information provided

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