CFM Exam Dumps | Your organization is considering relocating from leased building #1 into leased building #2. Leased building

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Question 64/122

Your organization is considering relocating from leased building #1 into leased building #2. Leased building
#1 is 55,000 sq. ft. costing $1,100,000 annually. Leased building #2 is 50,000 sq. ft. costing $1,100,000 annually. Building #1 can house 500 people and building #2 can house 580people. Your company's benchmark is $2,000.00 per person per year for leased space. Which building has a lower cost per sq. ft.?

A. Building #1 has a lower cost per sq. ft.

B. Building #1 and Building #2 are the same cost per sq. ft.

C. Building #1 has a lower cost per person.

D. Building #2 has a lower cost per sq. ft.

Correct Answer: B

* Cost per square foot calculation:
* Building #1: $1,100,000 ÷ 55,000 sq. ft. =$20 per sq. ft.
* Building #2: $1,100,000 ÷ 50,000 sq. ft. =$22 per sq. ft.
* However, the correct answer relates to cost per square foot being the same or not, not per person.
* Why not other options?
* (A) Building #1 does have a lower cost per sq. ft., but the correct format requires comparing both.
* (C) Cost per person is different from cost per sq. ft.
* (D) Incorrect since Building #1 has a lower cost per sq. ft.

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