Computation Method B

Using computation method B, you must specify an E.P. code that the system uses to retrieve the area for the building from the building log. In this example, the E.P code is 01 and the corresponding area in the building log is 90,000 square feet.

If you generate expense participation calculations, the system calculates the tenant's utility expense share for unit 1A in the following way:

Class exposure × (tenant area ÷ building area) = tenant's utility expense amount

90,000 × (20,000 ÷ 90,000) = 20,000

The system uses 90,000 square feet, instead of 100,000, because it found 90,000 was in the building log record for E.P. code 01.