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.
2.	From a cost? standpoint, why do companies such as BronxBronx Restaurant want to operate near or at full? capacity?
3.	The owner has been considering ways to increase the sales volume. The owner thinks that 10 comma 00010,000 pizzas could be sold per month by cutting the selling price per pizza from $ 6.25$6.25 a pizza to $ 5.75$5.75. How much extra profit? (above the current? level) would be generated if the selling price were to be? decreased? (Hint: Find the? restaurant's current monthly profit and compare it to the? restaurant's projected monthly profit at the new sales price and? volume.)

The owner of Bronx Restaurant is disappointed because the restaurant has been averaging 8000 pizza sales per? month, but the restaurant and wait staff can make and serve 10 comma 000 pizzas per month. The variable cost? (for example,? ingredients) of each pizza is $ 1.45. Monthly fixed costs? (for example,? depreciation, property? taxes, business? license, and? manager's salary) are $ 10000 per month. The owner wants cost information about different volumes so that some operating decisions can be made.

Monthly pizza volume. . . . . . . . . .

5,000

8,000

10,000

Total fixed costs. . . . . . . . . . . . . .

$10,000

Total variable costs. . . . . . . . . . . .

7,250

11,600

14,500

Total costs. . . . . . . . . . . . . . . . . .

Fixed cost per pizza. . . . . . . . . . . .

Variable cost per pizza. . . . . . . . . .

1.45

1.45

1.45

Average cost per pizza. . . . . . . . . . . . .

Selling price per pizza. . . . . . . . . .

$6.25

$6.25

$6.25

Average profit per pizza. . . . . . . . . . . .