Entrepreneurship and Small Business Management

Building Rental

Your business may rent or lease a building or a portion of a building, usually on an annual basis. The building owner may charge a certain rate per square foot per year. Your total monthly rental charge depends on the number square feet that your business occupies.

1.		Aloha Assemblies rents a portion of a building owned by The Blue Company. The floor space of Aloha's portion of the building measures 80 feet by 70 feet. How many square feet is this?
			A)	5600
			B)	560
			C)	56
			D)	300
2.		The Blue Company charges an annual rental rate of $4.50 per square foot. What is the annual cost of the space that Aloha Assemblies rents in problem 1?
			A)	$1350
			B)	$25,200
			C)	$2520
			D)	$27,000
3.		What is the monthly rental charge that Aloha pays in problem 2?
			A)	$112.50
			B)	$1578
			C)	$2100
			D)	$2250
4.		Max's Music Shop leases a 650 square foot mall space. The space rents for $11.20 per square foot per year. What does Max pay for monthly rent?
			A)	$7150
			B)	$661.82
			C)	$490.22
			D)	$606.67
5.		There is office space for rent that is 40 feet by 20 feet. How many square feet is this?
			A)	800
			B)	120
			C)	60
			D)	4000
6.		A warehouse is 3600 square feet. The annual rate per square foot is $5.00. What is the annual cost of renting the warehouse?
			A)	$7200
			B)	$15,000
			C)	$36,000
			D)	$18,000
7.		What is the monthly rental charge for the warehouse in problem 6?
			A)	$3000
			B)	$600
			C)	$4800
			D)	$1500
8.		The Lunch Grill rents a 1500 square foot area at the Carillon Mall. The annual rental charge is $16 per square foot. What is the monthly rental charge?
			A)	$93.75
			B)	$2000
			C)	$1500
			D)	$2200
9.		Marcia needs to rent a storage unit to store some of her excess inventory. She finds a 200 square foot unit with an annual rental charge of $4.75 per square foot. What will Marcia pay monthly to rent the unit?
			A)	$600
			B)	$79.17
			C)	$950
			D)	$57.50
10.		The R-Kade has rented additional mall space to expand its arcade operation. The space measures 30 feet by 50 feet and rents for $15.30 per square foot per year. What monthly rent does The R-Kade pay for the additional space?
			A)	$1912.50
			B)	$765
			C)	$1500
			D)	$2200.90
11.		The Moskiewitz Manufacturing Company is considering the rental of additional manufacturing space at $3.90 per square foot per year. The space MMC wants to rent measures 75 by 130 feet. What monthly rent will MMC pay for the additional space?
			A)	$975
			B)	$812.50
			C)	$3168.75
			D)	$2305.27
12.		The Plantery is opening a store in the warehouse district. The rent is $8.70 per square foot per year plus 5% of the store's gross sales. The area of the store is 1800 square feet. What will the Plantery pay for rent in its first year based only on its square footage?
			A)	$9000
			B)	$15,660
			C)	$12,987
			D)	$11,420
13.		If the Plantery in problem 12 had $197,000 in gross sales the first year, what is the total amount it will pay for rent that year?
			A)	$9850
			B)	$22,643.68
			C)	$25,510
			D)	$15,660
14.		Harvey's Shoe Repair Shop rents a 300 square foot space at the mall. The annual rent charge is $8.75 per square foot plus 3% of the shop's gross sales. What is the annual rent charged based only on the size of Harvey's Shoe Repair?
			A)	$9000
			B)	$4500
			C)	$12,270
			D)	$2625
15.		If Harvey's Shoe Repair Shop in problem 14 had $59,000 in gross sales one year, what is the total amount Harvey will pay to rent his space at the mall?
			A)	$4395
			B)	$1770
			C)	$1440
			D)	$10,770

Yong needs to move her consulting business to a new location. She has found two office spaces that she could use and is trying to decide which is the better deal. Use the information in the chart to answer questions 16-19.

16.		What is the annual cost of the Heatherbrook office space?
			A)	$17,050
			B)	$17,212.50
			C)	$16,981.25
			D)	$17,590.75
17.		If Yong's consulting business brings in $72,000 in annual gross sales, how much will she have to pay for the percentage portion of her rent?
			A)	$36,000
			B)	$360
			C)	$3600
			D)	It is impossible to tell from the information given.
18.		What is the annual cost of the Harcourt office space?
			A)	$12,960
			B)	$16,694.40
			C)	$17,212.50
			D)	$16,981.25
19.		Which office space is the better deal?
			A)	Heatherbrook
			B)	Harcourt
			C)	Both are the same price.
			D)	It is impossible to tell from the information given.
20.		There is a vacancy at the mall. The space that is open is 900 square feet. The annual rental rate is $13.50 per square foot. What is the monthly rental rate?
			A)	$1200
			B)	$600.16
			C)	$3209.43
			D)	$1012.50