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 Ave.

$5,000

$200 per person

Beta Blvd.

$8,000

$150 per person

If it is estimated that thirty persons will be living in this new chapter house, which location should PhUN select?

Select one:

a. Alpha Ave.

b. Beta Blvd.

c. neither Alpha Ave. nor Beta Blvd.

d. none of the choices

e. either Alpha Ave. or Beta Blvd.

Clear my choice

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