A Company Owns an Apartment Building Containing 100 Units

question 30

Short Answer

A company owns an apartment building containing 100 units.If the company charges $400 per month rent,then all units can be rented out,and for every increase of $20 per month in rent,the company will lose one customer.What rent should be charged to maximize revenue?

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Definitions:

Square Feet

A measurement unit for area, commonly used in real estate, equal to the area of a square with sides of one foot.

Indirect Expense

refers to expenses that are not directly associated with the production of goods or services, such as utility costs, rent, and administration salaries.

Gross Profit

The difference between revenue and the cost of goods sold, representing the basic profitability of a company's products or services.

Sports Apparel

Clothing and accessories designed for sports and physical activities.