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Business, 24.06.2021 16:20 igsgymnast

The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. The Skulls' president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows: Location
Annual Fixed
Variable
Alpha Ave.
$5,000
$200
per person
Beta Blvd.
$8,000
$150
per person
What would be the total annual costs for the Alpha Ave. location with 20 persons living there? Explain…
A. $5,400
B. $4,000
C. $5,000
D. $7,000
E. $9,000

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