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The owner of New York Restaurant is disappointed because the restaurant has been averaging 10,000 pizza sales per month, but the restaurant and wait staff
The owner of New York Restaurant is disappointed because the restaurant has been averaging 10,000 pizza sales per month, but the restaurant and wait staff can make and serve 12,500 pizzas per month. The variable cost (for example, ingredients) of each pizza is $1.60. Monthly fixed costs (for example, depreciation, property taxes, business license, and manager's salary) are $13,000 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 .. Total fixed costs.... Total variable costs Total costs Fixed cost per pizza Variable cost per pizza Average cost per pizza.. 6,500 10,000 12,500 Selling price per pizza 6.25 $ 6.25 $ 6.25 Average profit per pizza
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