A comparable dwelling of 2,550 square feet had a cost new of $318,750. What cost per square foot does it indicate?
Correct Answer
D) $125.00
Why this is correct: Calculation: $318,750 / 2,550 = $125.00. Why the other choices are wrong: $159.38 and $106.25 divide by 2,000 and 3,000 square feet, neither of which is the comparable dwelling; $127.50 divides by a rounded 2,500, which is not its actual area.
Why This Is the Correct Answer
Why this is correct: Calculation: $318,750 / 2,550 = $125.00. Why the other choices are wrong: $159.38 and $106.25 divide by 2,000 and 3,000 square feet, neither of which is the comparable dwelling; $127.50 divides by a rounded 2,500, which is not its actual area.
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