Please solve the requirement 3 as explained briefly.

The owner of Staten Island Restaurant is disappointed because the restaurant has been averaging 5,000 pizza sales per month, but the restaurant and wait staff can make and serve 8,000 pizzas per month. The variable cost (for example, ingredients) of each pizza is $1.35. Monthly fixed costs (for example, depreciation, property taxes, business license, and manager's salary) are $8,000 per month. The owner wants cost information about different volumes so that some operating decisions can be made. 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 nearest dollar. Enter costs per pizza, price per pizza, and profit per pizza to the nearest cent.) Monthly pizza volume 4,000 5,000 8,000 Total fixed costs. $ 8,000 $ 8,000 $ 8,000 Total variable costs 5,400 6,750 10,800 $ 13,400 $ 14,750 $ 18,800 Total costs Fixed cost per pizza. co 2.00 $ 1.60 $ 1.00 Variable cost per pizza 1.35 1.35 1.35 co 3.35 $ 2.95 $ 2.35 Average cost per pizza $ 6.25 $ 6.25 $ 6.25 Selling price per pizza Average profit per pizza $ 2.90 $ 3.30 $ 3.90 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 Companies want to run at full capacity to better utilize the resources they spend on fixed they produce, the lower the average fixed cost per unit. Requirement 3. The owner has been considering ways to increase the sales volume. The owner thinks that 8,000 pizzas could be sold per month by cutting the selling price per pizza from $6.25 a pizza to $5.75. 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.) Identify the profit formula and compute the monthly profit at the current and the new volume. Monthly profit 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 Companies want to run at full capacity to better utilize the resources they spend on fixed they produce, the lower the average fixed cost per unit. Requirement 3. The owner has been considering ways Total assets pizzas could be sold per month by cutting the selling pri profit (above the current level) would be generated if the Total costs restaurant's current monthly profit and compare it to the Total equity and volume.) Total liabilities Identify the profit formula and compute the monthly prof Total revenues e. The owner thinks that 8,000 zza to $5.75. How much extra reased? (Hint: Find the hly profit at the new sales price volume. Monthly profit 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 Companies want to run at full capacity to better utilize the resources they spend on fixed they produce, the lower the average fixed cost per unit. Requirement 3. The Total assets pizzas could be sold p profit (above the curre Total costs restaurant's current m Total equity and volume.) Total liabilities Identify the profit formi Total revenues ways to increase the sales volume. The owner thinks that 8,000 ig price per pizza from $6.25 a pizza to $5.75. How much extra if the selling price were to be decreased? (Hint: Find the o the restaurant's projected monthly profit at the new sales price profit at the current and the new volume. Monthly profit