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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