A general contractor is building a 50,000 square foot warehouse. The building permit fee is calculated at $8.50 per 1,000 square feet or fraction thereof. What is the total permit fee?
Correct Answer
A) $425.00
50,000 ÷ 1,000 = 50 units. 50 × $8.50 = $425.00. Since there's no fraction, the calculation is straightforward.
Why This Is the Correct Answer
The calculation correctly divides the total square footage by 1,000 to determine the number of billing units (50,000 ÷ 1,000 = 50). Since 50,000 divides evenly by 1,000, there is no fraction to round up. The fee is then calculated by multiplying 50 units by $8.50 per unit, resulting in $425.00. This follows the standard permit fee calculation method used in Florida construction.
Why the Other Options Are Wrong
Option B: $400.00
This answer ($400.00) would result from incorrectly using a rate of $8.00 per 1,000 square feet instead of the given $8.50 rate, or from miscalculating 50 × $8.50.
Option C: $450.00
This answer ($450.00) appears to come from incorrectly using a rate of $9.00 per 1,000 square feet, which is not the rate specified in the problem.
Option D: $500.00
This answer ($500.00) would result from using a rate of $10.00 per 1,000 square feet, which significantly exceeds the given rate of $8.50.
Memory Technique
Remember 'Divide, Check for fractions, Multiply' - DCM method for permit fee calculations
Reference Hint
Florida Building Code, Chapter 1 - Scope and Administration, Section on Permits and Fees
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