Answer: a. 80% b. $30960
Explanation:
a. What is the buildingís current occupancy rate?
Occupancy rate can be calculated as:
= (Area of the space occupied / total area of the space) × 100
We.need to calculate the area of the space occupied which will be:
= 35,000+13,000
= 48,000 Sq.Ft
Therefore, Occupancy Rate:
= (48,000 / 60,000) × 100
= 80%
b. If the annual expense for utilities is $2.15/sf and utilities are 30% fixed, what is the utility expense based on the occupancy rate?
Total area of utilities will be:
= 30% × 48,000
= 0.3 × 48,000
= 14,400 Sq.Ft
Annual utility expense per Sq.Ft = $2.15
Therefore, total annual expense of utility will be:
= 2.15 × 14,400
= $30,960
