Given the following information, calculate the net operating income assuming below-line treatment of capital expenditures: property: 4 office units, contract rents per unit: $2,500 per month; vacancy and collection losses: 15%; operating expenses: $42,000; capital expenditures: 10%.

$60,000

Explanation:

Property is 4 units

OE= 42,000 (of EGI)

Contract rents is 2500 per month

VC=15%

PGI=4*2500*12=120,000

120,000 -VC 18,000

EGI= 102,000

102,000 - OE 42,000

NOI= $60,000

Net operating income is $60,000

Explanation:

Numbers of Property = 4 units

Operating Expenses = $42,00)

Contract rents = $2500 / month

Vacancy and collection losses = 15%

Property Gross Rent = Number of Units x Contract rent per unit x No, of Months = 4 units x $2500 x 12 months = $120,000

Property Net Rent = Property Gross Rent - Vacancy and collection losses = $120,000 - ( $120,000 x 15% ) = $120,000 - $18,000 = $102,000

Property operating Income = Property Net Rent - Operating Expenses = 102,000 - 42,000  = $60,000

Since there are different flavors I will try to see which of my flavors cost the most and which cost the least. Next I will see what are the qualities of each drink and first give a few samples out and determine which flavor I most liked and which flavor is least liked out of all. As soon as I have all of my information gathered I will set my prices for each and every different flavor as I think it should be and I will also do a little research online to see kind of where each of my prices need to range from.