Setting up equation to figure out price needed?

Question

This question involves a housing developer looking to figure the average price per lot required to break even on each side of the subdivision. There are two sides, west and east. The west lots are larger than the east lots. The average price per sq.ft. required to break even for the entire subdivision is $1.722.

How do I set up the equation to find the average price needed for each lot on the east side and each lot on the west side?

Here is the basic data:

west side: 18 lots

east side: 21 lots

$ needed to break even: $1,200.000

average amount needed per sq.ft for all lots is $1.722

How do I get the average LOT price needed for each side of the subdivision(east and west??)

Answer 1

If 1.2 million dollars is needed for 1.722 dollars per sq ft. And assuming each side is equal sq ft, then there are 696864 sq ft all together. So each side has 348432 sq ft.

So each west lot = 19357.3 sq ft

               east lot = 16592.0 sq ft

So west lot cost $33,333

      east lot cost  $28,571

OK here goes

there are 18 lots at 23288.9 sq ft, and 21 lot at 13273.6 sq ft

18 * 23288.8 + 21 * 13273.6 = 697944 total sq ft.

So each sq ft will cost 1200000/69794 = $1.719 sq ft

Multiply by sq of property

I think you allready had all the info you needed.

good luck