If it is estimated that thirty persons will be living in this new chapter house, which location should the Skulls select?
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The Skulls, a student social organization, has two different locations under
consideration for constructing a new chapter house. Skull'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:
|
Location |
Annual Fixed |
Variable |
|
Alpha Ave |
$5000 |
$200 per person |
|
Beta Blvd |
$8000 |
$150 per person |
If it is estimated that thirty persons will be living in this new chapter house, which location should the Skulls select?
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