Question

The owner of Bronx 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 $1.50. Monthly fixed costs​ (for example,​ depreciation, property​ taxes, business​ license, and​ manager's salary) are $11,000 per month. The owner wants cost information about different volumes so that some operating decisions can be made.

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. . . . . . . . . . . .	5,500	10,000	12,500
	Total fixed costs. . . . . . . . . . . . . . .
	Total variable costs. . . . . . . . . . . . . .
	Total costs
	Fixed cost per pizza. . . . . . . . . . . . .
	Variable cost per pizza. . . . . . . . . . .
	Average cost per pizza. . . . . . . . . . .
	Selling price per pizza. . . . . . . . . . . .	$6.25	$6.25	$6.25
	Average profit per pizza. . . . . . . . . .

Answer 1