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 Monthly pizza volume 6,000 7,500 10,000 Data table Total fixed costs. 12,000 12,000 12,000 6. Total variable costs Total costs Monthly pizza volume 6,000 7,500 10,000 $ $ Total fixed costs. Total variable costs Total costs.. Fixed cost per pizza $ $ 1.55 1.55 Variable cost per pizza Average cost per pizza 1.55 Fixed cost per pizza.. Variable cost per pizza Selling price per pizza. Average profit per pizza $ 6.25 $ 6.25 $ 6.25 Average cost per pizza Selling price per pizza. Average profit per pizza $ 6.25 $ 6.25 $ 6.25 Requirement 2. From a cost standpoint, why do companies such as Central Park Restaurant want to operate near or at f Companies want to run at full capacity to better utilize the resources they spend on costs. The more units they Requirement 3. The owner has been considering ways to increase the sales volume. The owner thinks that 10,000 pizza $5.75. How much extra profit (above the current level) would be generated if the selling price were to be decreased? (Hint 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 Total revenues DDD Total costs on additional nanfit 1 = = = MacBook Pro Monthly profit A DII AA Print Done - - X Time Limit: 04:10:00 Submit quiz a E