The formula to calculate the Pizza Profit is:
\[ PP = (AP - AC) \times QP \]
Where:
Pizza profit is the total profit made from selling pizzas. It is calculated by subtracting the average cost of a pizza from the average price and then multiplying by the number of pizzas sold. This metric helps in understanding the profitability of a pizza business.
Let's assume the following values:
Using the formula:
\[ PP = (15.00 - 5.00) \times 100 = 1000 \]
The Pizza Profit is \$1000.
Let's assume the following values:
Using the formula:
\[ PP = (20.00 - 7.00) \times 200 = 2600 \]
The Pizza Profit is \$2600.