The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. The Skulls' president, a BCOM 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.
$
5,000
$
200
per person
Beta Blvd.
$
8,000
$
150
per person
What would be the total annual costs for the Alpha Ave. location with 20 persons living there?