Two people developed first-cut cost estimates to construct a new 130,000 square foot building on a university campus. Person A applied a generalpurpose per unit cost estimate of $180 per square foot for the estimate. Individual B was more specific: she used the area estimates and per unit cost factors shown below. (a) What are the cost estimates developed by the two people? (b) What is the percent increase between the lower and higher cost estimates? Type of Usage Area, % Cost per ft2, $ Classroom 30 125 Laboratory 40 185 Offices 30 110 Furnishings—labs 25 150 Furnishings—all others 75 25
Two people developed first-cut cost estimates to construct a new 130,000 square foot building on a university campus. Person A applied a generalpurpose per unit cost estimate of $180 per square foot for the estimate. Individual B was more specific: she used the area estimates and per unit cost factors shown below. (a) What are the cost estimates developed by the two people? (b) What is the percent increase between the lower and higher cost estimates? Type of Usage Area, % Cost per ft2, $ Classroom 30 125 Laboratory 40 185 Offices 30 110 Furnishings—labs 25 150 Furnishings—all others 75 25
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Two people developed first-cut cost estimates to
construct a new 130,000 square foot building on a
university campus. Person A applied a generalpurpose
per unit cost estimate of $180 per square
foot for the estimate. Individual B was more specific:
she used the area estimates and per unit cost
factors shown below. (a) What are the cost estimates
developed by the two people? (b) What is the percent increase between the lower and higher
cost estimates?
Type of Usage Area, % Cost per ft2, $
Classroom 30 125
Laboratory 40 185
Offices 30 110
Furnishings—labs 25 150
Furnishings—all others 75 25
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