The Owner of a Small Restaurant That Sells Take-Out Fried

Multiple Choice

The owner of a small restaurant that sells take-out fried chicken and biscuits pays $2,500 in rent each month, $500 in utilities, $750 interest on his loan, insurance premium of $200, and advertising on local bus $250 a month. A small bucket of take-out chicken, the only menu item, is priced at $9.50. Unit variable costs for the bucket of chicken are $5.50. At what level of sales of dollars of revenue will the restaurant break even?

A) $9,386.00
B) $9,975.00
C) $19,925.00
D) $9,500.00