Question: Phi Upsilon Nu, a student social organization, has two different locations under consideration for constructing a new chapter house. PhUN's president, a POM student, estimates
Phi Upsilon Nu, a student social organization, has two different locations under consideration for constructing a new chapter house. PhUN's 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:
| ANNUAL OPERATING COSTS | ||
| LOCATION | FIXED | VARIABLE |
| Alpha Avenue | $10,000 | $300 per person |
| Beta Blvd. | $16,000 | $200 per person |
How many people would be living in the new chapter house at the point of indifference?
TC=FC+VQ
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