If the center begins making "surplus cash" (profit) at 83% occupancy, 17% (100%-83%) of resident fees will be profit at a full occupancy of 200 residents.

.17 * 200 residents
= 34 residents are that 17% group that NCR profits on

34 residents * $2500/mo * 12 months
= $1,020,000 annual profit for NCR

If the average resident fee is only $1500, which seems unlikely given the fact that NCR was collecting $2500 room deposits over two years ago, the numbers look like this:

.17 * 200 residents
= 34 residents

34 residents * $1500/mo * 12 months
= $612,000 annual profit for NCR

0 comments: