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: $\begin{array}{lcl}
\text { Location } & \begin{array}{r}
\text { Annual } \
\text { Fixed }
\end{array} & \text { Variable } \
\hline \text { Alpha Ave. } & \$ 5,000 & \$ 200 \text { per person } \
\text { Beta Blvd. } & \$ 8,000 & \$ 150 \text { per person }
\end{array}$ What would be total annual costs for either location at the point of indifference?
A) $13,000
B) $13,350
C) $9,000
D) $17,000
E) $19,200

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The Answer of 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: $\begin{array}{lcl}
\text { Location } & \begin{array}{r}
\text { Annual } \
\text { Fixed }
\end{array} & \text { Variable } \
\hline \text { Alpha Ave. } & \$ 5,000 & \$ 200 \text { per person } \
\text { Beta Blvd. } & \$ 8,000 & \$ 150 \text { per person }
\end{array}$ What would be total annual costs for either location at the point of indifference?
A) $13,000
B) $13,350
C) $9,000
D) $17,000
E) $19,200

The Skulls, a Student Social Organization, Has Two Different Locations