Question - Say you own a 500-unit apartment complex. When the apartments are 90% occupied, monthly operating costs total $200,000. When occupancy dips to 80%, monthly operating costs fall to $197,000. A nearby manufacturing plant has just announced that it will close in three months. Since many residents will lose their jobs and move away, you fear occupancy may drop to 60%. If this happens, what do you expect your monthly operating costs tobe?
A. $216,500
B. $168,800
C. $191,000
D. $173,000
E. $133,333