Posted: January 25th, 2016
ABD Realty manages five apartment complexes in its region. Shown below are summary income statements for each apartment complex:
U | V | W | X | Y | ||
Rental income | $1,000 | $1,210 | $2,347 | $1,878 | $1,065 | |
Expenses | 800 | 1,300 | 2,600 | 2,400 | 1,300 | |
Operating income | $ 200 | ($ 90) | ($ 253) | ($ 522) | ($ 235) |
Included in the expenses is $1,200 of common corporate expenses that have been allocated to the apartment complexes based on rental income. These common corporate expenses would have to be incurred regardless of how many apartment complexes ABD Realty manages. The apartment complex(es) that ABD Realty should consider dropping is (are):
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