The correct answer is D, $38,400.
First calculate cubic feet:
36 × 200 × 12 = 86,400 cubic feet
One cubic yard equals:
3 feet × 3 feet × 3 feet = 27 cubic feet
Convert the warehouse to cubic yards:
86,400 ÷ 27 = 3,200 cubic yards
At $1 per cubic yard per month:
3,200 × $1 = $3,200 monthly rent
Annual rent:
$3,200 × 12 = $38,400
Therefore D is correct.
This problem tests volume, not floor area. If the rent had been stated per square foot, the height would not ordinarily be part of the calculation. Because the rental factor is explicitly expressed per cubic yard, all three dimensions must be used.
Candidates should remember that one square yard equals 9 square feet, while one cubic yard equals 27 cubic feet.
Study Guide Reference: Real Estate Calculations — Area, Volume, Cubic Measurements and Commercial Rent.
