Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Help w The owner of Staten Island Restaurant is disappointed because the restaurant has been averaging 4,000 pizza sales per month, but the restaurant and

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed Help w The owner of Staten Island Restaurant is disappointed because the restaurant has been averaging 4,000 pizza sales per month, but the restaurant and wait staff can make and serve 5,000 pizzas per month. The variable cost (for example, ingredients) of each pizza is $1.15. Monthly fixed costs (for example, depreciation, property taxes, business license, and manager's salary) are $4,000 per month. The owner wants cost information about different volumes so that some operating decisions cam be made. (Click the icon to view the chart for Requirement 1.) Read the requirements. Requirement 1. Use the chart below to provide the owner with the cost information. Then use the completed chart to help you answer the remaining questions. (Enter total variable costs to the hearest dollar. Enter costs per pizza, price per pizza, and profit per pizza to the nearest cent.) Monthly pizza volume 2,000 4,000 5,000 Total fixed costs 2300 4600 Total variable costs 5750 Total costs Fixed cost per pizza Variable cost per pizza Average cost per pizza Choose from any list or enter any number in the input fields and then continue to the next question.. ols The owner of Staten Island Restaurant is disappointed because the restaurant has been averaging 4,000 pizza sales per month, but the restaurant and wait staff ca make and serve 5,000 pizzas per month. The variable cost (for example, ingredients) of each pizza is $1.15. Monthly fixed costs (for example, depreciation, propert taxes, business license, and manager's salary) are $4,000 per month. The owner wants cost information about different volumes so that some operating decisions c (Click the icon to view the chart for Requirement 1.) be made. Read the requirements. Selling price per pizza $ 5.75 $ 5.75 $ 5.75 Average profit per pizza Requirement 2. From a cost standpoint, why do companies such as Staten Island Restaurant want to operate near or at full capacity? costs. The more units they produce, the Companies want to run at full capacity to better utilize the resources they spend on cost per unit. Requirement 3. The owner has been considering ways to increase the sales volum price per pizza from $5.75 to $5.25. How much extra profit (above the current level) restaurant's current monthly profit and compare it to the restaurant's projected mont Identify the profit formula and compute the monthly profit at the current and the new average fixed variable the ks that 5,000 pizzas could be sold per month by cutting the selling ed if the selling price were to be decreased? (Hint: Find the w sales price and volume.) Monthly profit 4,000 pizzas Choose from any list or enter any number in the input fields and then continue to the next question. The owner of Staten Island Restaurant is disappointed because the restaurant has been averaging 4,000 pizza sales per month, but the restaurant and wait staff can make and serve 5,000 pizzas per month. The variable cost (for example, ingredients) of each pizza is $1.15. Monthly fixed costs (for example, depreciation, property taxes, business license, and manager's salary) are $4,000 per month. The owner wants cost information about different volumes so that some operating decisions can (Click the icon to view the chart for Requirement 1.) be made. Read the requirements Selling price per pizza Average profit per pizza 5.75 $ 5.75 $ 5.75 Requirement 2. From a cost standpoint, why do companies such as Staten Island Restaurant want to operate near or at full capacity? Companies want to run at full capacity to better utilize the resources they spend on cost per unit Tools costs. The more units they produce, the the Requirement 3. The owner has been considering ways to increase the sales volume. The owner thinks that 5,000 pizzas could be sold price per pizza from $5.75 to $5.25. How much extra profit (above the current level) would be generated if the selling price were to be d restaurant's current monthly profit and compare it to the restaurant's projected monthly profit at the new sales price and volume.) Identify the profit formula and compute the monthly profit at the current and the new volume. higher utting the seling Find the lower 4.000 pizzas Monthly profit Choose from any list or enter any number in the input fields and then continue to the next question. This course (Managerial Accounting 210-Full Semester 5 (t)) is based on Braun: Managerial Arnim The owner of Staten Island Restaurant is disappointed because the restaurant has been averaging 4,000 pizza sales per month, but the restaurant and wait staff can make and serve 5,000 pizzas per month. The variable cost (for example, ingredients) of each pizza is $1.15. Monthly fixed costs (for example, depreciation, property taxes, business license, and manager's salary) are $4,000 per month. The owner wants cost information about different volumes so that some operating decisions can be made (Click the icon to view the chart for Requirement 1.) Read the requirements B Selling price per pizza ary Average profit per pizza 5.75 $ 5.75 $ 5.75 ces on Tools Requirement 2. From a cost standpoint, why do companies such as Staten Island Restaurant want to operate near or at full capacity? costs. The more units they produce, the Companies want to run at full capacity to better utilize the resources they spend on cost per unit. Requirement 3. The owner has been considering ways to increase the sales volume. The owner thinks that 5,000 pizzas could be sold per r price per pizza from $5.75 to $5.25. How much extra profit (above the current level) would be generated if the selling price were to be decree restaurant's current monthly profit and compare it to the restaurant's projected monthly profit at the new sales price and volume.) identify the profit formula and compute the monthly profit at the current and the new volume. the average fixed i average variable fixed 4,000 pizzas Monthly profit Choose from any list or enter any number in the input fields and then continue to the next question. variable 2 rary cost per unit. rces y Requirement 3. The owner has been considering ways to increase the sales volume. The owner thinks that 5,000 pizzas could be sold per month by cutting the selling price per pizza from $5.75 to $5.25. How much extra profit (above the current level) would be generated if the selling price were to be decreased? (Hint: Find the restaurant's current monthly profit and compare it to the restaurant's projected monthly profit at the new sales price and volume.) identity the profit formula and compute the monthly profit at the current and the new volume. ion Tools 4,000 pizzas 5,000 pizza Since the restaurant will generate the volume Monthly profit of the owner should the sales price to Choose from any list or enter any number in the input fields and then continue to the next

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison, Theresa Libby, Alan Webb

9th canadian edition

978-1259024900

Students also viewed these Accounting questions

Question

Does your answer from Step 8 surprise you? Explain why or why not.

Answered: 1 week ago

Question

Create and store in variable $newItem a new

Answered: 1 week ago