Business, 06.06.2020 16:57, cadeedmiston

The owner of BrooklynBrooklyn Restaurant is disappointed because the restaurant has been averaging 5,000 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 $ 1.20.Monthly fixed costs (for example, depreciation, propertytaxes, business license, and manager's salary) are $ 5,000 per month. The owner wants cost information about different volumes so that some operating decisions can be made. Read the requirementFrom a cost standpoint, why do companies such as BrooklynRestaurant want to operate near or at full capacity? Companies want to run at full capacity to better utilize the resources they spend . The more units they produce, thehigherlowertheaverage fixedaverage per unit.

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The owner of BrooklynBrooklyn Restaurant is disappointed because the restaurant has been averaging 5...