Question

A 15 comma 00015,000 square foot warehouse was just constructed for ​$900 comma 000900,000. If the​...

A

15 comma 00015,000

square foot warehouse was just constructed for

​$900 comma 000900,000.

If the​ cost-capacity factor is

0.770.77​,

what is the estimated cost to construct a

33 comma 00033,000

square foot​ warehouse?

The estimated cost to construct a

33 comma 00033,000

square foot warehouse is

​$nothing.

​(Round to the nearest​ dollar.)

0 0
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Answer #1

Cost of construction of warehouse 1, C1 = $900,000
Area of warehouse 1, Q1 = 15,000 sq. ft.
Area of warehouse 2, Q2 = 33,000 sq. ft.
Cost-capacity factor, x = 0.77

Cost of construction of warehouse 2 = C2

C2 = C1 * (Q2 / Q1)^x
C2 = $900,000 * (33,000 / 15,000)^0.77
C2 = $900,000 * 2.20^0.77
C2 = $900,000 * 1.835124
C2 = $1,651,612

So, cost of construction of 33,000 sq. ft. warehouse is $1,651,612

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