Cell Tell is expanding to a new area of town. The store's budget allows $2,500 per month to rent the needed 600 square foot kiosk. What is the maximum annual rate per square foot that Cell Tell can pay?
2500 * 12 / 600
= 25 * 2
= 50 :)
To find the maximum annual rate per square foot that Cell Tell can pay, we'll need to calculate how much they can afford to spend per square foot per month and then multiply that by 12 to get the annual rate.
First, let's calculate how much Cell Tell can spend per square foot per month:
Rent budget per month = $2,500
Square footage needed = 600
Monthly rate per square foot = Rent budget per month / Square footage needed
Monthly rate per square foot = $2,500 / 600
Monthly rate per square foot ≈ $4.17
Next, let's calculate the maximum annual rate per square foot:
Annual rate per square foot = Monthly rate per square foot x 12
Annual rate per square foot ≈ $4.17 x 12
Annual rate per square foot ≈ $50.04
Therefore, the maximum annual rate per square foot that Cell Tell can pay is approximately $50.04.