Question

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?

Answer #1

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 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 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 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?

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?

A real estate agent suggests that the mean rent for a
one-bedroom apartment in Blue View is $575 per month. A random
sample shows the dollar amount below. Assume a Normal distribution
with a standard deviation of $50. Construct and interpret a 93%
confidence interval for the corresponding population mean.
550
475
560
460
535
609
514
531
612
605
550
650
Identify the proper Test or Confidence interval:
Complete the Test or Confidence Interval.

Art Neuner, an investor in real estate, bought an office
condominium. The market value of the condo was $250,000 with a 70%
assessment rate. Art feels that his return should be 12% per month
on his investment after all expenses. The tax rate is $31.50 per
$1,000. Art estimates it will cost $275 per month to cover general
repairs, insurance, and so on. He pays a $140 condo fee per month.
All utilities and heat are the responsibility of the...

A real estate developer is planning to build an apartment
building specifically for grduate students on a parcel of land
adjacent to a major university. 4 types of apartment can be
included in the building : efficiencies(E), one bedroom(A),
two-bedrrom(B), and three bedroom(C) units. each efficiency
requires 700 square feet, each one-bedroom apartment 900 square
feet, each two bedroom apartment 1100 square feet, and each three
bedroom apartment 1300 square feet. The developer believes that the
building should include no...

Exchange Corp. is a company that acts as a facilitator in
tax-favored real estate swaps. Such swaps, know as 1031 exchanges,
permit participants to avoid some or all of the capital gains taxes
that would otherwise be due. The bookkeeper for the company has
been asked to prepare a report for the company to help its
owner/manager analyze performance. The first such report appears
below:
Exchange Corp.
Analysis of Revenues and Costs
For the Month Ended May 31
Actual Unit...

Exchange Corp. is a company that acts as a facilitator in
tax-favored real estate swaps. Such swaps, know as 1031 exchanges,
permit participants to avoid some or all of the capital gains taxes
that would otherwise be due. The bookkeeper for the company has
been asked to prepare a report for the company to help its
owner/manager analyze performance. The first such report appears
below:
Exchange Corp
Analysis of Revenues and Costs
For the Month Ended May 31
Actual...

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