What percentage of fixed costs does a property have if its CAM expense of $30,000 includes 60% fixed?

The correct percentage of fixed costs in the property’s CAM (Common Area Maintenance) expense is determined by analyzing the information given. In this scenario, the CAM expense totals $30,000, with 60% being fixed.

To find the fixed cost amount, you multiply the total CAM expense by the fixed cost percentage:

Fixed Costs = Total CAM Expense x Fixed Percentage

Fixed Costs = $30,000 x 0.60 = $18,000

Now, to determine the percentage of fixed costs relative to the total CAM expense, you take the fixed costs and divide it by the total CAM expense, then multiply by 100 to express it as a percentage.

Percentage of Fixed Costs = (Fixed Costs / Total CAM Expense) x 100

Percentage of Fixed Costs = ($18,000 / $30,000) x 100 = 60%

Thus, the property has 60% of its CAM expense categorized as fixed costs, which confirms that the answer is accurate. Understanding this calculation demonstrates the relationship between total expenses and fixed versus variable costs within property management.