The net operating income for month under variable costing is $11,350.
The profitability of real estate investments that produce income is evaluated using a calculation known as net operating income (NOI). NOI is the total revenue from the asset less all operating costs that are deemed to be absolutely necessary.
On a property's income and cash flow statement, the term "net operating income" (NOI) refers to a before-tax figure that excludes loan principal and interest payments, capital expenses, depreciation, and amortization. The term "EBIT," which stands for "earnings before interest and taxes," is used when this metric is applied to other industries. Real estate experts use the valuation technique of net operating income to ascertain the exact value of their properties that generate an income. The income a property generates must be deducted from it in order to determine net operating income (NOI).
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