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Question 198 - DA0-001 discussion

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Refer to the exhibit.

A development company is constructing a new Init in its apartment complex. The complex has the following floor plans:

Using the average cost per square foot of the original floor plans. which of the following should be the price of the Rose Init?

A.
$640,900
Answers
A.
$640,900
B.
$690,000
Answers
B.
$690,000
C.
$705,200
Answers
C.
$705,200
D.
$702,500
Answers
D.
$702,500
Suggested answer: D

Explanation:

The correct answer is D. $702,500.

To find the price of the Rose unit, we need to use the average cost per square foot of the original floor plans. The average cost per square foot is calculated by dividing the price by the square footage of each unit type. Using the data from the table, we can do the following:

Jasmine: $345,000 / 1,000 = $345 per square foot Orchid: $525,000 / 2,000 = $262.5 per square foot Azalea: $375,000 / 1,500 = $250 per square foot Tulip: $450,000 / 1,800 = $250 per square foot

The average cost per square foot of the original floor plans is the mean of these four values, which is ($345 + $262.5 + $250 + $250) / 4 = $276.875 per square foot.

To find the price of the Rose unit, we need to multiply the average cost per square foot by the square footage of the Rose unit. The Rose unit has a square footage of 2,535, according to the table.

Therefore, the price of the Rose unit is $276.875 x 2,535 = $702,421.875.

Rounding to the nearest whole number, we get $702,500 as the price of the Rose unit.

asked 02/10/2024
tony Gentry
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