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:
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
Answer: 9000