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The owner of Queern Restaurant is descpointed because the restaurere has been meraging 5.000 pizza sales per month, but the restaurant and wat staff
The owner of Queern Restaurant is descpointed because the restaurere has been meraging 5.000 pizza sales per month, but the restaurant and wat staff can make and serve 10,000 pizzas per morth. The vanatle cost (for example ingredients) of each pizza is $1.20 Monthly fxed costs (for example, depreciation, property taxes, business license, and managers salary) are $5,000 per mo. The owner wants cost information about different volumes so that some operating decisions can be made Read the requreneris Requirement 1. Use the chart below to provide the owner with the cost information. Then use tw completed chart to help you answer Be remaining questions (Ender ital variable costs to the nearest dol Er cost per pizza, price per pizza and proft per pizza to the nearest cent Many pizza volume Taco Total variable cost To Fiat cust per pizz Vetle co por Average est per pizza 2500 5000 10,000 Sung pnce per pi 5.50 $ 5.00 5.50 Average pro por tra Requirements 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 1 From point, why do companies such as Quera Restaurant want to operate rear or at all capsoty? 3 The owner has been considering ways to increme the sales volume. The owner thinks bat 10,000 pizzas could be sold per month by cutting the sing proe per pizza from $5.50 a arra to $5.00 How much extra proft above the oment level would be onerated if the selling pra were to be decreased? Het Fed the staan's sumen monthly profit and compare it to the restaurant's projected monthly profit at the new Print Done
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