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Svetlanka [38]
3 years ago
6

Estimate the cost of expanding a planned new clinic by 25,000 ft2. The appropriate capacity exponent is 0.62, and the budget est

imate for 185,000 ft2 was $17 million.
Business
1 answer:
jeka57 [31]3 years ago
4 0

Answer:

cost of expansion  = $1389859.55

Explanation:

Given data:

Original size = 185,000 ft^2

New expansion = 25000 ft^2

capacity component  = 0.62

total cost for original size of clinic is = $17 million

Size of new clinic = 185,000 + 25,000 = 210,000 ft^2

cost of new clinic=  17,000,000 \times [\frac{size\ of\ new\ clinic}{185,000}]^{0.62}

cost of new clinic =17,000,000 \times [\frac{210,000}{185,000}]^{0.62}

cost of new clinic = $18,389,859.56

cost of expansion = cost of 210,000 ft^2  -  cost of 185,000 ft^2

                               = 18,389,859.56- 17,000,000

cost of expansion  = $1389859.55

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