Question: You own a large building with 3 0 0 small salon studio that you lease at a rate of $ 7 5 0 per month

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 $140,000,$80,000 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 85% capacity. Based on the cost behavior of the current studio rental business, what is the predicted monthly operating income when 85% of units are leased out?
40,000
$191,250
$46,250.85
$144,999.15
Cannot determine from information provided.
 You own a large building with 300 small salon studio that

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