At the Virtual Café, the average price per meal sold is $15 with an average variable cost of $7. Fixed costs for July are expected to be $30,000. If the restaurant manager expects to sell 5,000 meals in July, the net income (or loss) for the month would be:
A) $25,000 net income.
B) $10,000 net income.
C) $0 (breakeven) .
D) $10,000 net loss.
Correct Answer:
Verified
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