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:

LocationAnnual FixedVariableAlpha Ave.$5,000$200 per personBeta Blvd.$8,000$150 per person

What would be the total annual costs for the Alpha Ave. location with 20 persons living there? 

(10pts)

 $4,000

 $5,400

 $7,000

 $5,000

 $9,000