Cliff Runs a Restaurant in a Small Town Known for Its

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. At 75% capacity, what is Cliff's net income?

A) $4,800
B) $6,000
C) $7,200
D) $7,800
E) $8,400

Correct Answer:

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