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

question 46

Multiple Choice

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

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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