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

question 55

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: $$\begin{array} { l c c } \text { Location } & \text { Annual Fixed } & \text { Variable } \\\hline \text { Alpha Ave. } & \$ 5,000 & \$ 200 \text { perperson } \\\text { Beta Blvd. } & \$ 8,000 & \$ 150 \text { perperson }\end{array}$$ If it is estimated that 30 persons will be living in this new chapter house, what would be the Skulls' annual cost savings by selecting the less costly location, rather than the more costly?

• A) $0
• B) $1,500
• C) $200
• D) $150
• E) $350

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Definitions:

Vague Impressions

Refers to unclear or imprecise perceptions or concepts that lack distinct details.

Expected Norms

The unwritten rules or behaviors that are considered standard, appropriate, or typical within a specific group, community, or culture.

Particular Situation

A specific set of circumstances or state of affairs at a given time.

Behavior

The actions or reactions of an individual or group in response to external or internal stimuli.