The preliminary cost for a 50,000 ft² aircraft han­gar must be estimated. (a) The first unit estimate was $98.23 per square foot. Estimate the cost of the hangar. (b) The budget limit came in at $4 mil­lion. Perform two analyses: determine the maxi­mum allowed size to be within budget at the first estimated unit cost, and determine the maximum unit cost to stay within budget and maintain the 50,000 ft² size.

What will be an ideal response?


(a) Cost = 98.23(50,000) = $4,911,500

(b) Max size = 4,000,000/98.23 = 40,721 ft²
Max cost = 4,000,000/50,000 = $80 per ft²

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