Ferdinand Construction (FC) manages the design and construction of hospitals. Ferdinand has developed several formulas that it uses to quote jobs. These include costs of basic construction but exclude equipment and furniture. These estimates are also dependent on the purpose of the hospital (teaching hospitals are more costly to build) and location (downtown hospitals are more costly to build). Both of these are based on the building costs. The estimated costs also depend on whether the hospital has few or many stories (high- rise buildings are more expensive). The following are the cost estimates for one region in the Northeast: Design costs Building costs per square foot (low-rise) Building costs per square foot (high-rise) Downtown premium Teaching hospital premium Design costs Building costs Downtown premium Teaching hospital premium Estimated cost Required: A local university medical school has asked Ferdinand Construction to provide a quote on a high-rise teaching hospital located in the city center downtown. The university estimates the hospital will be 306,000 square feet in total. Based on the engineering estimates above, what will such a hospital cost to build? Note: Enter your answers in thousands. Amounts in thousands $ $ 15,006,000 360 420 0 60% 20%
Ferdinand Construction (FC) manages the design and construction of hospitals. Ferdinand has developed several formulas that it uses to quote jobs. These include costs of basic construction but exclude equipment and furniture. These estimates are also dependent on the purpose of the hospital (teaching hospitals are more costly to build) and location (downtown hospitals are more costly to build). Both of these are based on the building costs. The estimated costs also depend on whether the hospital has few or many stories (high- rise buildings are more expensive). The following are the cost estimates for one region in the Northeast: Design costs Building costs per square foot (low-rise) Building costs per square foot (high-rise) Downtown premium Teaching hospital premium Design costs Building costs Downtown premium Teaching hospital premium Estimated cost Required: A local university medical school has asked Ferdinand Construction to provide a quote on a high-rise teaching hospital located in the city center downtown. The university estimates the hospital will be 306,000 square feet in total. Based on the engineering estimates above, what will such a hospital cost to build? Note: Enter your answers in thousands. Amounts in thousands $ $ 15,006,000 360 420 0 60% 20%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Gadubhai
Transcribed Image Text:Ferdinand Construction (FC) manages the design and construction of hospitals. Ferdinand has developed several formulas that it uses
to quote jobs. These include costs of basic construction but exclude equipment and furniture. These estimates are also dependent on
the purpose of the hospital (teaching hospitals are more costly to build) and location (downtown hospitals are more costly to build).
Both of these are based on the building costs. The estimated costs also depend on whether the hospital has few or many stories (high-
rise buildings are more expensive). The following are the cost estimates for one region in the Northeast:
Design costs
Building costs - per square foot (low-rise)
Building costs - per square foot (high-rise)
Downtown premium
Teaching hospital premium
Design costs
Building costs
Downtown premium
Teaching hospital premium
Estimated cost
Amounts in
thousands
Required:
A local university medical school has asked Ferdinand Construction to provide a quote on a high-rise teaching hospital located in the
city center downtown. The university estimates the hospital will be 306,000 square feet in total. Based on the engineering estimates
above, what will such a hospital cost to build?
Note: Enter your answers in thousands.
$
$ 15,006,000
0
360
420
60%
20%
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