Please answer the following questions and show work. Thank you 42. The Skulls, a
ID: 2515859 • Letter: P
Question
Please answer the following questions and show work. Thank you
42. The Skulls, a student social organization, has two different locations under n 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: Location Alpha Ave. Beta Blvd Annual Fixed $5,000 $8,000 Variable $200 per person $150 per person 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. $9,000Explanation / Answer
Total Annual Costs for the Alpha Ave = Fixed + Variable Cost
= $ 5,000 + $ 200 * 20 Persons
= $ 5,000 + $ 4,000
= $ 9,000
Hence the correct answer is E, $ 9,000