Given the following information,calculate the break-even ratio on the following commercial property.Operating expenses: $650,000,Capital expenditures: $105,000,Potential gross income: $2,500,000,Debt service in the first year: $960,000,Loan amount: $20,000,000,Purchase price: $27,300,000

Question

Quizplus · Accepted Answer

The break-even ratio is calculated as (Operating Expenses + Debt Service) / Potential Gross Income. Here, it is ($650,000 + $960,000) / $2,500,000 = 68.6%.

Given the Following Information,calculate the Break-Even Ratio on the Following