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Apartments is a -unit apartment complex. When the apartments are 90% occupied, monthly operating costs total . When occupancy dips to 80%, monthly operating costs fall to . The owner of the apartment complex is worried because many of the apartment residents work at a nearby manufacturing plant that has just announced it will close in three months. The apartment owner fears that occupancy of her apartments will drop to % 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 %?

Seaside Apartments is a 1,000-unit apartment complex. When the apartments are 90% occupied, monthly operating costs total $229,100. When occupancy dips to 80%, monthly operating costs fall to $223,200. The owner of the apartment complex is worried because many of the apartment residents work at a nearby manufacturing plant that has just announced it will close in three months. The apartment owner fears that occupancy of her apartments will drop to 70% 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 70%? Let's begin by determining the formula that is used to calculate the variable cost (slope). Change in cost - Change in volume = Variable cost (slope) Now determine the formula that is used to calculate the fixed cost component. Total operating cost Total variable cost = Fixed cost Use the high-low method to determine Seaside's operating cost equation. y = X + Assuming the same relevant range, what should the owner expect her operating costs to be if occupancy falls to 70%? (Round your answer to the nearest whole dollar.) The owner should expect her operating costs to be if occupancy falls to 70%

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