At the Virtual Café, the Average Price Per Meal Sold

Multiple Choice

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.