Question

You are the manager of an apartment complex with 50 units. When you set rent at...

You are the manager of an apartment complex with 50 units. When you set rent at $700/month, all apartments are rented. As you increase rent by $25/month, one fewer apartment is rented. Maintenance costs run $50/month for each occupied unit. What is the rent (in dollars) that maximizes the total amount of profit?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The manager of a large apartment complex knows from experience that 90 units will be occupied...
The manager of a large apartment complex knows from experience that 90 units will be occupied if the rent is 300 dollars per month. A market survey suggests that, on the average, one additional unit will remain vacant for each 1 dollar increase in rent. Similarly, one additional unit will be occupied for each 1 dollar decrease in rent. What rent should the manager charge to maximize revenue?
The manager of a large apartment complex knows from experience that 80 units will be occupied...
The manager of a large apartment complex knows from experience that 80 units will be occupied if the rent is 368 dollars per month. A market survey suggests that, on the average, one additional unit will remain vacant for each 8 dollar increase in rent. Similarly, one additional unit will be occupied for each 8 dollar decrease in rent. What rent should the manager charge to maximize revenue?
The manager of a large apartment complex knows from experience that 100 units will be occupied...
The manager of a large apartment complex knows from experience that 100 units will be occupied if the rent is 340 dollars per month. A market survey suggests that, on the average, one additional unit will remain vacant for each 10 dollar increase in rent. Similarly, one additional unit will be occupied for each 10 dollar decrease in rent. What rent should the manager charge to maximize revenue?
The manager of a large apartment complex knows from experience that 110 units will be occupied...
The manager of a large apartment complex knows from experience that 110 units will be occupied if the rent is 468 dollars per month. A market survey suggests that, on the average, one additional unit will remain vacant for each 9 dollar increase in rent. Similarly, one additional unit will be occupied for each 9 dollar decrease in rent. What rent should the manager charge to maximize revenue?
A real estate office handles a 80-unit apartment complex. When the rent is $550 per month,...
A real estate office handles a 80-unit apartment complex. When the rent is $550 per month, all units are occupied. For each $45 increase in rent, however, an average of one unit becomes vacant. Each occupied unit requires an average of $70 per month for service and repairs. What rent should be charged to obtain a maximum profit?
Marginal Revenue for an Apartment Complex Lynbrook West, an apartment complex, has 100 two-bedroom units. The...
Marginal Revenue for an Apartment Complex Lynbrook West, an apartment complex, has 100 two-bedroom units. The monthly profit (in dollars) realized from renting x apartments is represented by the following function. P(x) = -9x2 + 1520x - 52000 (a) What is the actual profit realized from renting the 41st unit, assuming that 40 units have already been rented? $ (b) Compute the marginal profit when x = 40 and compare your results with that obtained in part (a). $
You own a​ 500-unit apartment complex and charge a monthly rental rate of​ $1,200 per unit....
You own a​ 500-unit apartment complex and charge a monthly rental rate of​ $1,200 per unit. When the apartments are​ 96% occupied, monthly operating costs total​ $300,000, $240,000 of which are variable costs. A nearby manufacturing plant has just announced that it is closing in the upcoming year. As a​ result, you anticipate occupancy will decrease to​ 85%. Using your knowledge of cost​ behavior, what is your predicted monthly operating​ income? A. ​$225,600 B. ​$246,000 C. ​$216,875 D. ​$237,500                                          E....
You are considering a luxury apartment building project that requires an investment of $12,500,000. The building...
You are considering a luxury apartment building project that requires an investment of $12,500,000. The building has 35 units. The firm expects that the maintenance cost for the apartment building will be $250,000 in the first year, and to rise to $300,000 in the second year, and to continue to increase by $50,000 in subsequent years. The cost to hire a manager for the building is estimated to be $80,000 per year. After four years of operation, the apartment building...
A box is constructed out of two different types of metal. The metal for the top...
A box is constructed out of two different types of metal. The metal for the top and bottom, which are both square, costs $2 per square foot and the metal for the sides costs $6 per square foot. Find the dimensions that minimize cost if the box has a volume of 15 cubic feet. Length of base x= ___Height of side z=___ The manager of a large apartment complex knows from experience that 80 units will be occupied if the...
Allen Benedict is thinking of buying an apartment complex that is offered for sale by the...
Allen Benedict is thinking of buying an apartment complex that is offered for sale by the firm of Getz and Fowler. The price, $2.25 million, equals the property's market value. The following statement of income and expense is presented for Benedict's consideration: The St. George Apartments Prior Year's Operating Results, Presented by Gertz and Fowler, Brokers 30units, all 2-bedroom apartments, $975/month $351,000 water & dryer rentals 10,000 gross annual income $361,000 Less operating expenses: Manager's salary $10,000 Maintenance staff (1...