A Certain Location of O'Bannon's Restaurant Has Annual Fixed Costs

Multiple Choice

A certain location of O'Bannon's restaurant has annual fixed costs of $200,000. If an average tab at the restaurant is $60 and the variable costs per tab is $20, how many groups of customers must O'Bannon's serve per year in order to break even?

A) 2,000
B) 5,000
C) 10,000
D) 3,333
E) 2,500