How to Calculate Parking Revenue?
What factors need to be considered in calculating parking revenue? How can we calculate the parking revenue collected based on the given data?
1. Total Parking Spaces: There are 40 parking spaces available. 2. Rent per Parking Spot: The potential rent per spot is $110 per month. 3. Occupancy Rate: The occupancy rate is 40%. 4. Fixed Revenue Percentage: 50% of the total parking revenue is fixed. To calculate the parking revenue collected, we need to follow these steps: Fixed revenue = Total parking spaces * Rent per spot * Occupancy rate * Fixed revenue percentage Fixed revenue = 40 * $110 * 0.4 * 0.5 = $880 Variable revenue = (Total parking spaces * Rent per spot * Occupancy rate) - Fixed revenue Variable revenue = (40 * $110 * 0.4) - $880 = $1760 - $880 = $880 Total parking revenue = Fixed revenue + Variable revenue Total parking revenue = $880 + $880 = $1760 Therefore, based on the given data, the parking revenue collected is $1760 per month.Factors to Consider:
Calculation Process: