Real Estate Math
A commercial Oregon property has annual gross income of $240,000 and operating expenses of $96,000. What is the operating expense ratio?
A60%
B40%✓ Correct
C25%
D30%
Explanation
Operating Expense Ratio = Operating Expenses ÷ Gross Income = $96,000 ÷ $240,000 = 0.40 = 40%. Using the values given ($240,000, $96,000), apply the appropriate formula.. The correct answer is 40%.. This is a common calculation on the Oregon real estate exam.
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