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Tuesday, July 25, 2023

CFAT Practice Test Questions with Answers in PROBLEM SOLVING - ps017

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1. Roofing cost in British Columbia is from $3 to $6 per square foot on average using  asphalt shingles. A condo in Esquimalt with a roof area of 144 ft x 72 ft is planning to replace their roof using asphalt shingles through a contractor that charges $4.5 per square foot for labor and materials. How much is the condo's roof replacement cost?


a. $45,665

b. $45,656

c. $46,566

d. $46,656 --- answer


Solution:


cost per square foot

= $4.5 /sq ft


roof area 

= 144 ft x 72 ft

= 10,368 sq ft


Roofing cost

= cost per square foot multiplied by roof area


= 4.5 x 10,368 

= $46,656




2. The gross roof replacement cost of a Victoria condo is $60,500. If the GST tax rate is 5% and the condo building has 18 units, how much is the cost to be  paid by each unit?


a. $3,259

b. $3,529  --- answer

c. $4,529

d. $5,592


Solution:


Gross roofing cost

= $60,500


Total roofing cost 

= Gross roofing cost + GST


= 60,500 

+ 5% (60,500) 


= 60,500 + 3,025

= $63,525


Cost/unit

= 63,525/18

= $3,529


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