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the owner of Queenss Restaurant is disappointed because the restaurant has been averaging 5,000 pizza sales per month, but the restaurant and wait staff can

the owner of Queenss Restaurant is disappointed because the restaurant has been averaging 5,000 pizza sales per month, but the restaurant and wait staff can make and serve 7,000 pizza per month. The variable cost (for example, I gredients) of each pizza is $1.30. Monthly fixed cost (for example, depreciation, property taxes, business license, and managers salary) are $7,000 per month. The owner wants cost information about different volumes so that he can make some operating decisions.

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A B C D E F G H near or at full capacity? Roquiremont 1. Fill in the chart to provide the owner with the cost information he wants Then use the 10 Monthly pizza volume 3.500 5.000 7.009 17 12 13 Total fixed costs 14 Total variable costs 15 16 Total costs 17 18 Fixed cost per pizza 19 20 Variable cost per pizza 27 Average cost per pizza 22 23 6.25 5 6.25 5 6:25 24 Sales price per pizza 25 Average profit per pizza 26 27 ANSWER: 28

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