Question

A building contains 50 one-bedroom units and 150 two-bedroom units. The one-bedroom units rent for $550 monthly; two-bedrooms rent for $675. The vacancy rate is 7 percent; operating expenses are estimated at 40 percent of effective gross income. There is an additional income of $2,000 from vending machines. What are the Operating expenses of this building? A building contains 50 one-bedroom units and 150 two-bedroom units. The one-bedroom units rent for $550 monthly; two-bedrooms rent for $675. The vacancy rate is 7 percent; operating expenses are estimated at 40 percent of effective gross income. There is an additional income of $2,000 from vending machines. What are the Operating expenses of this building?
$1,545,000
$54,075
$719,425
$575,540

Answer 1

Gross income will be 93% of rent plus vending income.

... 0.93·(50·$550 +150·$675) +2000 = $121,737.5

Operating expenses are 40% of this.

... 0.40·$121,737.5 = $48,695

_____

When fully occupied, gross rental income is $128,750, so no number larger than that makes any sense at all. The only selection that is close is $54,075, which is 44.4% of effective gross income.

Answer 2

Answer:

Step-by-step explanation:

.93(50*550+150*675)= () x 12= () +2000= () x .40 = answer