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The owner of Riverdale Restaurant is disappointed because the restaurant has been averaging 10,000 pima sales per month, but the restaurant and wait staff can

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The owner of Riverdale Restaurant is disappointed because the restaurant has been averaging 10,000 pima sales per month, but the restaurant and wait staff can make and serve 12.500 pios per month. The variable cost (for example, ingredients) of each pizza is $1.60. Monthly fixed costs (for example, deprociation, 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 cen be made. (Click the ion to viow the chart for Requirement 1.) Read the requirsments. Requirement 1. Use the chart below to provide the owner with the cost informatian. Then use the completed chart to holp you answer the remaining guestions. Eintor folal vasiable cosis to the nearost dollor. Enter costs per pizza, price per paza, and profit per pizza to the nearest cent) The owner of Riverdale Restaurant is disappointed because the restaurant has been averaging 10,000 pizza salos per month, but the restaurant and wait stall can make and sorve 12,500 pin per month. The variablo cost (for example, ingredionts) of cach pizza is $1.60. Monthly fxed costs (for example, depreciation, property taxes, business ficense, 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. FFE (Click the ioon to view the chact for Requiremeat 1.) Read the requictments. Requirement 2. From a cost standpoint, why do companies wich as Riverdale Restaurant want to operase near or at tull capachy? Corepanios want to run of full capacity to better utilice the resources they spend on cost por unit. Requirement 3. The owner has been considering ways to increase the sales volume. The owner thiniss that 12,500 pirzas could be sold per month by cueng the selling price per pexa from \$6.25 to \$5.75. How much extra profit (above the current level) would be generated if the selling price were to be decreased? (Hint Find the restarant's current monthily profit and coiripare if to the restaurants projected monthly profit at the new sales price and volume.)

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