Use the concepts/methods related to the lectures on System Performance to addres
ID: 418190 • Letter: U
Question
Use the concepts/methods related to the lectures on System Performance to address the following challenge: The cost of constructing an office building is estimated to be as follows Acquisition of land: S2 million .Site preparation and landscaping: SI million Foundation for a building of up to 25 stories: S5 million Lobby and ground level shops: S3 million Each floor of office space: $2 million Roofing: S5 million . If each story has 10,000 square feet of rentable space, what is the total cost and the average cost per square foot for a 20-story building? Question 1.a. (7 Points) Question 1.b. (7 Points) What is the marginal cost of adding one story to the building? Question 1.c. (7 Points) Write an equation for the total, average, and marginal costs of an office building that could be constructed on this site that could have from 10 to 25 stories? Question 1.d. (7 PointP the total, average and marginal costs of an office building as a function of the number of stories in the buildingExplanation / Answer
Q1.a.
Total cost = land cost + Site preparation cost + Foundation + Lobby and ground level shop construction cost + construction cost per floor * 20 + Roofing cost
= 2+1+5+3+2*20+5
= $ 56 million
Total rentable space of 20-story building = rentable space per floor * number of floors = 10000*20 = 200,000 sq-ft
Cost per sq-ft = Total cost / Total rentable space
= 56*10^6/(10000*20)
= $ 280 per sq-ft
Q1.b. Marginal cost of adding one story to the building = $ 2 million
Q1.c. The equations are given below:
Total cost = (land cost + Site preparation cost + Foundation + Lobby and ground level shop construction cost + construction cost per floor * Number of storys + Roofing cost)
Average cost = Total cost / Total rentable space
= (land cost + Site preparation cost + Foundation + Lobby and ground level shop construction cost + construction cost per floor * Number of storys + Roofing cost) / (Number of storys*10000)
Marginal cost = $ 2 million (fixed)
Q1.d.
Same as above.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.