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?

Factors to Consider:

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.

Calculation Process:

To calculate the parking revenue collected, we need to follow these steps:

Step 1: Calculate the fixed revenue:

Fixed revenue = Total parking spaces * Rent per spot * Occupancy rate * Fixed revenue percentage

Fixed revenue = 40 * $110 * 0.4 * 0.5 = $880

Step 2: Calculate the variable revenue:

Variable revenue = (Total parking spaces * Rent per spot * Occupancy rate) - Fixed revenue

Variable revenue = (40 * $110 * 0.4) - $880 = $1760 - $880 = $880

Step 3: Calculate the total parking revenue:

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.

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