Given the Following Information,calculate the Net Operating Income Assuming Below-Line

question 15

Multiple Choice

Given the following information,calculate the net operating income assuming below-line treatment.Property: 4 office units,Contract Rents per unit: $2500 per month,Vacancy and collection losses: 15%,Operating Expenses: $42,000,Capital Expenditures: 10%:

• A)$48,000
• B)$60,000
• C)$95,000
• D)$102,000

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Definitions:

Scratch-and-Save

A promotional discount method where customers scratch a card to reveal a discount or prize.

Profit

The financial gain realized when the revenue generated from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Rate of Markdown

The percentage decrease from the original price to the sale price.

Operating Expenses

Costs associated with the day-to-day operations of a business or organization.