Low, medium, and high cost estimates for a 30,000 ft² apartment building in zip code 79912 are $3,111,750, $3,457,500, and 4,321,875, respectively. (a) What is the cost per square foot for the medium cost estimate, and (b) what is the percent increase between low and high cost per square foot estimates?
What will be an ideal response?
(a) Medium: Cost = 3,457,500/30,000 = $115.25 per ft²
(b) Low: 3,111,750/30,000 = $103.73 per ft²
High: 4,321,875/30,000 = $144.06 per ft²
Percent increase = [(144.06 – 103.73)/103.73] (100) = 38.9%
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