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

question 42

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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 perperson  Beta Blvd. $8,000$150 perperson \begin{array} { l c c } \text { Location } & \text { Annual Fixed } & \text { Variable } \\\hline \text { Alpha Ave. } & \$ 5,000 & \$ 200 \text { perperson } \\\text { Beta Blvd. } & \$ 8,000 & \$ 150 \text { perperson }\end{array} If it is estimated that 30 persons will be living in this new chapter house, which location should the Skulls select?


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