The following table shows the expansion expenses of a business. Calculate the building growth costs of expansion.
| | |
| :-------------------- | :---------------------------------- |
| **Expansion Expenses** | |
| **Product Growth** | |
| Focus Groups | 40 people at $195/person |
| Inventory Expenses | 20% on $260,000 value |
| New Equipment | $230,000 |
| **Building Growth** | |
| Architect | $14,000 |
| Attorneys | $62,000 |
| Bankers | $110,000 |
Building Growth Costs = $[?]
Answer (1)
Identify the individual building growth costs: Architect ($14,000), Attorneys ($62,000), and Bankers ($110,000).
Sum the costs: 14 , 000 + 62 , 000 + 110 , 000 = 186 , 000 .
The total building growth costs are $186 , 000 .
Explanation
Understanding the Problem We are given a table of expansion expenses for a business, and we need to calculate the total building growth costs. The table provides the costs for the architect, attorneys, and bankers, which are the components of the building growth costs.
Identifying the Costs To find the total building growth costs, we need to sum the individual costs for the architect, attorneys, and bankers. The costs are:
Architect: $14,000 Attorneys: $62,000 Bankers: $110,000
Calculating the Total Cost Now, we add these costs together: 14 , 000 + 62 , 000 + 110 , 000 = 186 , 000
Final Answer Therefore, the total building growth costs are $186,000.
Examples
Understanding how to calculate expansion costs is crucial for businesses planning to grow. For example, if a small bakery wants to open a new branch, they need to consider various costs like construction, legal fees, and financial advisor fees. By accurately calculating these building growth costs, the bakery can create a realistic budget and secure the necessary funding for their expansion. This ensures they can successfully open their new branch without financial surprises.
