It can be hard to determine an average value of an area or a large amount of material. When you want a value that you can easily compare against other samples, it is easiest to break the cost down into a cost per specific unit of measure. If you are dealing with large volumes, narrow the cost per 1,000 feet to give you an idea of the expense incurred based on a specific size.
Measure the area in question to obtain the total number of feet in question. Divide the number of feet in the area by 1,000 and make note of the result. For example, if the area is 5,000 feet, divide 5,000 by 1,000 to obtain 5.
Determine the total cost of the object or material. Include all applicable taxes and fees in the total cost.
Divide the total cost by the total thousands of feet. The result is the total cost per 1,000 feet. If the total cost is $10,000, divide 10,000 by 5 to obtain a cost of $2,000 per 1,000 feet.
Writer Bio
Tara Kimball is a former accounting professional with more than 10 years of experience in corporate finance and small business accounting. She has also worked in desktop support and network management. Her articles have appeared in various online publications.