The owner of Central Park Restaurant is disappointed because the restaurant has been averaging 7,500 pizza sales per month, but the restaurant and wait staff can make and serve 10,000 pizzas per month. The variable cost (for example, ingredients) of each pizza is $1.55. Monthly fixed costs (for example, depreciation, property taxes, business license, and manager's salary) are $12,000 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. Data table Monthly pizza volume .... 6,000 7,500 10,000 $ $ $ Requirement 1. Use the chart below to provide the owner with the cost information. Then use the completed chart to help you ans Enter costs per pizza, price per pizza, and profit per pizza to the nearest cent.) Total fixed costs. Total variable costs Monthly pizza volume. 6,000 7,500 10,000 Total costs... $ Total fixed costs.. Fixed cost per pizza.... Variable cost per pizza Total variable costs Total costs Average cost per pizza .... Selling price per pizza .. Average profit per pizza $ 6.25 $ 6.25 $ 6.25 Fixed cost per pizza Variable cost per pizza Average cost per pizza Selling price per pizza. Average profit per pizza 6.25 $ 6.25 $ 6.25 Print Done Requirement 2. From a cost standpoint, why do companies such as Central Park 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 cost per unit. Requirement 3. The owner has been considering ways to increase the sales volume. The owner thinks that 10,000 pizzas could be sold per month by cutting the selling price per pizza from $6.25 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.) Requirement 3. The owner has been considering ways to increase the sales volume. The owner thinks that 10,000 pizzas could be sold per month by cutting the selling price per pizza from $6.25 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. 7,500 pizzas 10,000 pizzas Monthly profit Since the restaurant will generate of the owner should the sales price to the volume.