Ask Question
BusinessBusiness
21 January, 09:54

An advertiser rents a rectangular billboard that is 21.5 ft wide and 13 ft tall. The rent is $12 per square foot. For a billboard three times as tall, the advertiser has to pay $30,186. Is this reasonable? Explain.

+2
Answers (2)
  1. 21 January, 11:33
    0
    No; when the height is tripled, the area is also tripled.

    Explanation:

    Use the formula for area of a rectangle to find the area of the smaller billboard.

    A=bh

    Substitute 21.5 for b, 13 for h, and simplify.

    A = (21.5) (13) = 279.5 ft2

    Therefore, the area of the smaller billboard is 279.5 ft2.

    Use the formula for area of a rectangle to find the area of the billboard with triple height.

    A=bh

    Substitute 21.5 for b, 3⋅13 for h, and simplify.

    A = (21.5) (3⋅13) = (21.5) (39) = 838.5 ft2

    Therefore, the area of the billboard with triple height is 838.5 ft2.

    Notice that 838.5=3 (279.5), which is 3 times the area of the smaller billboard.

    So, the area has changed by a factor of 3.

    Therefore, when the height is tripled, the area is also tripled.

    It is given that the rent is $12 per square foot.

    Calculate the rent of the billboard of 279.5 ft2.

    12⋅279.5=3,354

    Therefore, for the billboard of 279.5 ft2 the advertiser has to pay $3,354.

    It is also given that for the billboard with triple height the advertiser has to pay $30,186.

    Notice that $30,186=9 ($3,354), which is 9 times the rent for the smaller billboard.

    So, the rent has changed by a factor of 9.

    Since the area is tripled, the rent $30,186 for a billboard three times as tall is not reasonable.

    Therefore, this rent is not reasonable.
  2. 21 January, 11:56
    0
    If the cost is only variable, the proportion of the cost is wrong.

    The proportionated cost should be of $10,062

    Explanation:

    Giving the following information:

    An advertiser rents a rectangular billboard that is 21.5 ft wide and 13 ft tall. The rent is $12 per square foot. For a billboard three times as tall, the advertiser has to pay $30,186.

    First, we need to calculate the cost of the first billboard:

    Square foot = 21.5*13 = 279.5sq

    Total cost = 279.5*12 = $3,354

    Now, a billboard 3 times as tall:

    Square foot = 21.5 * (13*3) = 838.5

    Total cost = 838.5*12 = 10,062

    If the cost is variable, the proportion of the cost is wrong.

    The proportionated cost should be of $10,062
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “An advertiser rents a rectangular billboard that is 21.5 ft wide and 13 ft tall. The rent is $12 per square foot. For a billboard three ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Mrs. watson believes that all immigrants should go back to the country they came from, and she refuses to hire any for her floral business. this is an example of:
Answers (1)
A company currently has no items in inventory. The demand for the next four months is 200, 400, 250, and 350 units.
Answers (1)
Juan wants to deposit $700 into savings accounts at three different banks: bank of chance, merchant bank, and utopian financing. he will deposit four times as much into merchant bank as bank of chance because they offer a higher interest rate.
Answers (1)
The cost of $500,000 worth of 15-year term life insurance for Audrey is $28.44 per month. If Audrey's employer covers 75% of this cost, how much is deducted from Audrey's gross income per year for life insurance?
Answers (1)
1. Calculate owners' equity. Pasta Enterprises has $42,000 in cash, $20,000 in inventory, $17,000 balance due to creditors, and $21,000 balance due from customers. What is the amount of owners' equity?
Answers (1)
New Questions in Business
Under ASC 606, the transaction price generally should be adjusted for the effect of the time value of money when A. A royalty contract with a distribution in which the consideration to be received depends on sales to end customers. B.
Answers (1)
ALT Inc. conducts periodic reviews of the distribution of pay and the favorable outcomes granted to employees, such as promotions and increased office space.
Answers (1)
If total liabilities increased by $6,000 and the assets increased by $8,000 during the accounting period, what is the change in the owner's equity amount? A. Decrease of $2,000 B. Decrease of $2,000 C. Increase of $10,000 D. Decrease of $10,000
Answers (1)
You are invited to go to the mall with a new group of friends from school. you don't know them that well, but are excited that they included you in their plans.
Answers (1)
Suppose hypothetically that you buy a lot of food such as tofu, veggie burgers, and organic fruit that are not included in the market basket used to compute the CPI.
Answers (1)
Home » Business » An advertiser rents a rectangular billboard that is 21.5 ft wide and 13 ft tall. The rent is $12 per square foot. For a billboard three times as tall, the advertiser has to pay $30,186. Is this reasonable? Explain.
Sign Up Forgot Password?