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Requirement 2. From a cost standpoint, why do companies such as Brooklyn Restaurant want to operate near or at full capacity? Companies want to
Requirement 2. From a cost standpoint, why do companies such as Brooklyn Restaurant want to operate near or at full capacity? Companies want to run at full capacity to better utilize the resources they spend on costs. The more units they produce, the the per unit. Requirement 3. The owner has been considering ways to increase the sales volume. He believes he could sell 6,000 pizzas a month by cutting the sales price from $6.00 a pizza to $5.50. How much extra profit (above the current level) would he generate if he decreased the sales price? (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. 4,000 pizzas 6,000 pizzas Monthly profit Since the restaurant will generate the volume. of $ the owner should the sales price to
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