Mort Is the Owner of an Apartment Building Containing Ten

question 47

Multiple Choice

Mort is the owner of an apartment building containing ten identical apartments.Mort resides in one apartment and rents out the remaining units.For 2013,the following information is available: $\begin{array}{ll}\text { Gross rents } & \$ 21,600 \\\text { Utilities for total building } & \$ 2,500 \\\text { Maintenance and repairs (rental apartments only) } & \$ 1,200 \\\text { Advertising for vacant apartments } & \$ 300 \\\text { Depreciation of building (all ten units) } & \$ 5,000\end{array}$ What amount should Mort report as net rental income for 2013?

• A)$12,600
• B)$13,350
• C)$13,500
• D)$17,600
• E)None of the above

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Definitions:

Linear Programming

A mathematical technique for maximizing or minimizing a linear objective function, subject to linear equality and linear inequality constraints.

Constraints

are limitations or restrictions that affect the planning and execution of projects, including time, budget, materials, and human resources.

Shadow Price

The monetary value assigned to one additional unit of a resource in the context of a constrained optimization problem.

Assembly Time

The total time required to put together various components or subsystems into a finished product.