Please answer all requirements in screenshot Thank you The o

Please answer all requirements in screenshot. Thank you.

The owner of Brooklyn Restaurant is disappointed because the restaurant has been averaging 8,000 pizza sales per month, but the restaurant and wait staff can make and serve 10,000 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 $10,000 per month. The owner wants cost information about different volumes so that some operating decisions can be made.

Requirement 1. Use the chart below to provide the owner with the cost information. Then use t pizza to the nearest cent.) Monthly pizza volume 5,000 8,000 10,000 Total fixed costs.. Total variable costs Total costs Fixed cost per pizza . . . . . . . . .. Variable cost per pizza . . . . . . Average cost per pizza . . . . . . . 6.25 $ 6.25 Selling price per pizza.... Average profit per pizza 6.25 $ Enter any number in the edit fields and then click Check Answer.

Solution

Solution:(1): Computation of different cost (cost information):

Note:

(a) In case of fixed cost, total fixed cost remains the same but per unit fixed cost changes, whereas, in case of variable cost, total variable cost changes but per unit variable cost remains the same.

Fixed cost per pizza = Total fixed cost/total output

Average cost per pizza= total cost/total output

Average profit per pizza = selling price per pizza - average cost per pizza

Solution:(2): From the cost standpoint, companies such as Brooklyn restaurant want to operate near or at full capacity because at that level the company will incur minimum cost per unit and will earn maximum profit.

Solution:(3):

Total profit at 8,000(Current) units level = 3.55*8000

= $28,400

Average profit at 10000 units level when selling price per pizza is $5.75 = 5.75-2.45 = $3.3/ pizza

Total profit at 10000 units level = 3.3*10000

= $33,000

Therefore, extra profit = 33,000-28,400 = $4,600

Monthly Pizza volume	5,000 units	8,000 units	10,000 units
Total fixed cos	$10,000	$10,000	$10,000
Total variable cost	(1.45*5000) $7,250	(1.45*8000) $11,600	(1.45*10000) $14,500
Total cost	$17,250	$21,600	$24,500
Fixed cost per pizza	$2	$1.25	$1
Variable cost per pizza	$1.45	$1.45	$1.45
Average cost per pizza	$3.45	$2.70	$2.45
Selling price per pizza	$6.25	$6.25	$6.25
Average profit per pizza	$2.8	$3.55	$3.8