Given the Following Information, Calculate the Operating Expense Ratio for This

question 13

Multiple Choice

Given the following information, calculate the operating expense ratio for this property. Potential gross income: $120,000, Vacancy rate: 9%, Net operating income: $57,900, Operating expenses: $51,300.

• A) 34%
• B) 43%
• C) 47%
• D) 53%

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Definitions:

Annual Target ROI

The specific return on investment a company aims to achieve within one fiscal year.

Target Return-on-investment Pricing

A pricing method aimed at achieving a specific return on investment by setting prices based on the required rate of return.

Automobile Manufacturer

A company engaged in the design, production, marketing, and selling of motor vehicles.

Book Publisher

A company or individual responsible for bringing a book to the public by handling its production, marketing, and distribution.