A student organization has been given permission to operate a pizza stand during the What price should you charge per pizza? upcoming homecoming weekend. The stand will be located just outside the football Use cost-based pricing to determine your price. stadium, making it accessible during the game. The location is also convenient for visitors as they tour the campus at other times during the weekend. An estimated 2,500 visitors will be on campus, in addition to the campus population of 1,500. How much of each raw material will you need and what will it cost? Calculate below: Each pizza requires: 1/2 pound of pizza flour oz - ounce Total 2 ounces of pizza sauce lb = pound Amount per Total ounces Potential sales units needed pounds 16 oz = 1/b Ingredient pizza 1/8 pound of pepperoni 1/2 pound of cheese Pizza flour 8 oz (1/2 lb) This is the number you indicated in your answer to question #1. Pizza flour costs $8.00 per 10-pound bag Pizza 2 oz (1/B lb) Pizza sauce, $4.80 per 64-ounce jar sauce Pepperoni, $18.00 per 10-pound package Cheese, $15.00 per 5-pound package Pepperoni 2 oz ( 1/B lb) Cheese Club members will cook the pizzas and staff the stand on a volunteer basis. The 8 oz ( 1/2 lb) university requires each vendor to pay a $25 permit fee and a $50 refundable deposit on the building. Your club plans to donate the profits from the pizza sales to a local children's hospital. Pizza flour - Need X $8 00/10lb = Pizza sauce - Need X $4.80/64oz = How many pizzas can you anticipate selling? Pepperoni - Need X $18.00/10lb = This can be complicated. Factors such as the weather, time of day, and presence of Cheese - Need X $15.00/51b other food vendors would have to be considered. Obviously, you would have to consider the demand for pizzas at several price points. The simplest method for answering this question is to estimate sales as a percentage from the total market. Total cost of all raw materials used = Fixed Costs: 4. What will be your probable profit? (Show your calculation) Variable Cost/Pizza (Based on your calculations from the table below): Amount per Cost of Cost per Ingredient pizza Ingredient Cost per ounce pizza Pizza flour 8 oz (1/2 lb) $8.00 per 10lb Pizza 2 oz (1/8 1b) $4.80 per BOMBS 640Z Pepperoni 2 oz (1/8 lb) $18.00 per 101b Cheese 8 oz (1/2 1b) $15.00 per 51b Variable Cost/Pizza =