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

What would be total annual costs for either location at the point of indifference?

Total Cost=FC+(V*Q)

FC = Fixed cost

V = Variable cost per unit

Q = Quantity of output

Multiple Choice

• $32,000

• $28,000

• $34,000

• $26,000

• $30,000