The manager of a large apartment complex knows from experience that 110 units will be occupied if the rent is 400 suggests that, on the average, one additional unit will remain vacant for each 1 dollar increase in rent. Similarly, one a ed for each 1 dollar decrease in rent. What rent should the manager charge to maximize revenue?
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- The manager of a large apartment complex knows from experience that 110 units will be occupied if the rent is 360 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. (a) If æ is the number of units rented, and p is the rent per unit in dollars, what is the price-demand equation (assuming it is linear)? p = (b) What is the monthly revenue function for the manager? (Hint: Revenue is the product of the price per item and the number of items.) R(x) = (c) How many apartment units should be rented to maximize the monthly revenue? apartment unitsShonda & Shonda is a company that does land surveys and engineering consulting. They have an opportunity to purchase new computer equipment that will allow them to render their drawings and surveys much more quickly. The new equipment will cost them an additional $1.200 per month, but they will be able to increase their sales by 10% per year. Their current annual cost and break-even figures are as follows: A. What will be the impact on the break-even point if Shonda & Shonda purchases the new computer? B. What will be the impact on net operating income if Shonda & Shonda purchases the new computer? C. What would be your recommendation to Shonda & Shonda regarding this purchase?Cost-plus target return on investment pricing. Jason Brady is the managing partner of a business that has just nished building a 60-room motel. Brady anticipates that he will rent these rooms for 15,000 nights next year (or 15,000 roomnights). All rooms are similar and will rent for the same price. Brady estimates the following operating costs for next year:
- The story: You have been offered a new position with an increase in your pay, within the company, but will have to move to take the position. Comparable rentals to accommodate your lifestyle are 30% in the new city. Food is also pricier. You want to save the same percent of your income in the new job. This exercise will challenge you on creating a worksheet, entering relative formulas, formatting, print setup, and analysis. Income: Current Proposed Yearly $50,000 $60,000 Monthly ? ? Expenses Current Proposed Rent $1000 $1300 Car payment $400 $400 Insurance $300 $400 Utilities $300 $400 Cell phone $75 $75 Food $250 $400 Savings 20% of pay 20% of pay Total Monthly Expenses: ? ? Net Income ? ? Complete the following steps: Create a workbook to reflect the above. Populate the “?” with formulas Apply formula for the net, that is the income less the expenses Format for the target audience Verify that printing the worksheet will please target audience Does it make sense for you to…A. How many trips must Bristol sell every month to break even? B. Bristol's owner believes that 350 trips is a reasonable forecast of the average monthly demand. What is the margin of safety in term of the number of airport trips?After a successful year for your beach shop, you are wondering whether to open one more store this year. There are equal chances for the coming summer to be rainy or sunny. If the weather is sunny, you will earn $55,000 in profits per store. However, if the weather is rainy, your profit will be $35,000 if you open one store and zero if you open two stores. What is your expected profit under complete information? O A $110,000 OB. $55,500 OC. $90,000 D. $72,500
- Throughout the semester we have talked about the challenges facing office building owners in a post pandemic work environment where office workers are allowed to work remotely. You own a 500,00 square foot office building in a viable urban market, but you anticipate a stabilized vacancy rate of 40% for the next 10 years. If your investors require a 12% cash on cash return, how much could you spend per square foot to convert the vacant office space to micro-apartments if your project stabilized cash available to investors will be $12 million? Question 18 options: $200 per square foot. $800 per square foot. $250 per square foot. $500 per square foot.You are assessing the development of a new office building and your research indicates current market rates are as follows: Gross rent: $500/sqm Outgoings: $85/sqm Car parking: $500/bay/month The building will be completed in two years’ time. Gross rent is forecasted to escalate at 8% pa, CPI is expected to remain steady at 6.1% and parking charges are expected to increase by a rate halfway between rent and inflation. What net market income (per square metre) and car parking rent (per bay per month) should you expect to receive upon completion of the building?You have the following information regarding a hotel that you wish to purchase and are trying to decide if the hotel is a good investment from a break-even perspective. Figure out the Break Even Point (BEP) including the return on investment (you do not have to worry about income tax). What would be the average daily rate (ADR) for the calculated BEP? Rooms 200 Occupancy (open 365 days a year) 78% Owner's Investment $ 5,000,000.00 Return on Investment 10% Loan $ 15,000,000.00 Interest Rate on Loan 4% Total Other Fixed Costs $ 3,400,000.00 Total Variable Cost Percentage 25% Breakeven Point Average Daily Rate
- Hey, I need some help in Business Analytics. I have no idea what I am doing, here is the problem. The manager of a small firm is considering whether to produce a new product that would require leasing some special equipment at a cost of $20,000 per month. In addition to this leasing cost, a production cost of $10 would be incurred for each unit of the product produced. Each unit sold would generate $20 in revenue. Develop a mathematical expression for the monthly profit that would be generated by this product in terms of the number of units produced and sold per month. Then determine how large this number needs to be each month to make it profitable to produce the product.You are constantly trying to save your company some money. One decision you encounter is a make or buy decision for the new project manager. The make solution has an upfront cost of $25,000 plus $3,000 per month as a maintenance fee. The buy solution has an upfront cost of $20,000 plus $3,250 per month as a maintenance fee as well as a $250 per month subscription fee. What is the minimum usage period in months required for the company to justify the make decision, and if the project will last 1 year should the company make or buy?Your boss has just presented you with the summary in the accompanying table of projected costs and annual receipts for a new product line. He asks you to calculate the IRR for this investment opportunity. What would you present to your boss, and how would you explain the results of your analysis? (It is widely known that the boss likes to see graphs of PW versus interest rate for this type of problem.) The company’s MARR is 10% per year.