Each Month, the Owner of a Car Wash Pays $2,500

Multiple Choice

Each month, the owner of a car wash pays $2,500 in rent, $500 in utilities, $750 interest on the business loan, an insurance premium of $200, and $250 on advertising on local bus routes. A full-service car wash is priced at $10.50. Unit variable costs for the car wash are $7.50. At what level of revenue will the car wash break even?

A) $4,200
B) $10,500
C) $14,700
D) $30,000
E) $39,900