At the Virtual Cafe, 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:

$25,000 net income.

$10,000 net income.

$0 (breakeven).

$10,000 net loss.