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The owner of Queen Restaurant is disappointed because the restaurant has been averaging 10,000 pizza sales per month, but the restaurant and wait staff
The owner of Queen 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 diffrent volumes to that some operating decisions can be made (Click the icon to view the chart for Requirement 1.) Read the aumenta 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 ions (Enter total vable costs the nearest donar Er costs per puts, proper pizza and proft per pleza to the nearest cent Monty pizza volume Tulal teed costs Tutal variate coats T 6.500 10.000 12.500 13000 13000 13000 Fixed cost per pa Varie cost per pitra Average cost per pizza Selling price per pizz Average profit per pizza 6.25 $ 625 $ 625 Requirement 2. From a cost standpoint, why do companies such as Queens 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
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