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

question 51

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: $\begin{array}{lcl}\text { Location } & \begin{array}{r}\text { Annual } \\\text { Fixed }\end{array} & \text { Variable } \\\hline \text { Alpha Ave. } & \$ 5,000 & \$ 200 \text { per person } \\\text { Beta Blvd. } & \$ 8,000 & \$ 150 \text { per person }\end{array}$ What would be the total annual costs for the Alpha Ave. location with 20 persons living there?

• A) $5,400
• B) $4,000
• C) $5,000
• D) $7,000
• E) $9,000

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Definitions:

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An alteration made to financial records or statements to correct errors or account for changes.

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A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure that a company's financial transactions are correctly recorded.