The Skulls, a Student Social Organization, Has Two Different Locations

Multiple Choice

The Skulls, a student social organization, has two different locations under consideration 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: $$\begin{array} { l c c } \text { Location } & \text { Annual Fixed } & \text { Variable } \\\hline \text { Alpha Ave. } & \$ 5,000 & \$ 200 \text { perperson } \\\text { Beta Blvd. } & \$ 8,000 & \$ 150 \text { per person }\end{array}$$
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)  $9,000