PLEASE SHOW ALL CALCULATIONS and ANSWER ALL QUESTIONS!!!

A student organization has been given permission to operate a pizza stand during the upcoming homecoming weekend. The stand will be located just outside the football 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.

Each pizza requires:

• 1/2 pound of pizza flouroz - ounce
• 2 ounces of pizza sauce lb = pound
• 1/8 pound of pepperoni16 oz = 1lb
• 1/2 pound of cheese

Pizza flour costs $8.00 per 10-pound bag

Pizza sauce, $4.80 per 64-ounce jar

Pepperoni, $18.00 per 10-pound package

Cheese, $15.00 per 5-pound package

Club members will cook the pizzas and staff the stand on a volunteer basis. The 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.

How many pizzas can you anticipate selling?________________________

This can be complicated. Factors such as the weather, time of day, and presence of 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.

Fixed Costs:_________________

Variable Cost/Pizza (Based on your calculations from the table below):_________

Ingredient

Amount per pizza

Cost of

ingredient

Cost per ounce

Cost per pizza

Pizza flour

8 oz (1/2 lb)

$8.00 per 10lb

Pizza sauce

2 oz (1/8 lb)

$4.80 per 64oz

Pepperoni

2 oz (1/8 lb)

$18.00 per 10lb

Cheese

8 oz (1/2 lb)

$15.00 per 5lb

Variable Cost/Pizza=

$

What price should you charge per pizza?______________________

Use cost-based pricing to determine your price.

How much of each raw material will you need and what will it cost? Calculate below:

Ingredient

Amount per pizza

Potential sales units

Total ounces needed

Total pounds

Pizza flour

8 oz (1/2 lb)

This is the number you indicated in your answer to question #1.

Pizza sauce

2 oz (1/8 lb)

"

Pepperoni

2 oz (1/8 lb)

"

Cheese

8 oz (1/2 lb)

"

Pizza flour - Need _________________ X $8.00/10lb= _________________

Pizza sauce - Need ________________ X $4.80/64oz = __________________

Pepperoni - Need _________________ X $18.00/10lb = __________________

Cheese- Need ___________________ X $15.00/5lb= __________________

Total cost of all raw materials used=__________________

4.What will be your probable profit?___________________________

(Show your calculation)