Question: Requirement 2 . From a cost standpoint, why do companies such as Stater 'sland Restaurant want to operate near or at full capacity? Companies want
Requirement From a cost standpoint, why do companies such as Stater 'sland Restaurant want to operate near or at full capacity?
Companies want to run at full capacity to better utilize the resources they spend on costs. The more units they produce, the the cost per unit.
Requirement The owner has been considering ways to increase the sales volume. The owner thinks that pizzas could be sold per month by cutting the selling price per pizza from $ to $ 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.
Identify the profit formula and compute the monthly profit at the current and the new volume.
tableMonthly profit pizzas, pizzas,
Since the restaurant will generate
of the owner should the sales price to the volume.
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