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
5.26.2008
Calculations: Why NCR Wants To Build
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