Question

Given the following information, calculate the total amount of annual operating expenses for this income-producing property: minor roof repairs: $20,000; property taxes: $30,000; maintenance: $25,000; janitorial: $15,000; security: $10,000; debt service: $175,000.

Answer 1

Answer:

$100,000

Explanation:

Operating expenses refers to the expenses incurred by the firm at the time of starting the business.

Total amount of annual operating expenses for this income-producing property:

= minor roof repairs + property taxes + maintenance + janitorial + security

= $20,000 + $30,000 + $25,000 + $15,000 + $10,000

= $100,000