Cliff runs a restaurant in a small town known for its theatres and tourist attractions. Cliff charges an average of $18 per meal. He estimates his variable costs to be $6 per meal and fixed costs are $12,000 per month. Cliff has the capacity to serve 2,000 meals per month. What number of meals must be sold to break-even?
A) 1,200 meals
B) 1,400 meals
C) 1,500 meals
D) 1,000 meals
E) 1,250 meals
Correct Answer:
Verified
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