A restaurant determined that their food cost is $8 per meal. If it sets its selling price at $12, it would generate 2,000 units in sales. If it sets its selling price at $16, it would generate 1,750 units in sales. Determine what price it should set the selling price to be, and calculate the contribution margin.

Select one:

a. $16, $14,000

b. $12, $8,000

c. $12, $14,000

d. $16, $8,000