13) Big Red is interested in opening a BBQ restaurant in Tulsa. Monthly fixed costs are expected to be $8,000. Variable costs are expected to be 57% of the $14 average meal price. A market analysis indicates that approximately 1,800 customers will frequent the restaurant in the targeted locale each month. If Big Red wants to generate before-tax profits of at least $2,500 per month, should they open the restaurant?

a) YES

b) NO

Explain the answer