An owner is building a new operation and calculates that it can achieve $400 in sales per square foot built. The own feels that to achieve a desired 18 percent ROI the operation must generate $1,100,000 in annual revenue. How large should the owner's new facility be to generate the desired level of annual revenue?

Question

Quizplus · Accepted Answer

To achieve the desired annual revenue of $1,100,000 with $400 in sales per square foot, divide the total desired revenue by the sales per square foot: $1,100,000 / $400 = 2,750 square feet.

An Owner Is Building a New Operation and Calculates That