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4 Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home
4 Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria's owner has determined that the shop has two major cost drivers-the number of pizzas sold and the number of deliveries made. The pizzeria's cost formulas appear below: Cost per Cost per Pizza Delivery 50 points Fixed Cost per Month 8 Pizza ingredients $ 4.60 01:42:24 Kitchen staff $6,170 Utilities $ 740 $ 0.60 Delivery person Delivery vehicle $ 760 $3.40 $1.60 Equipment depreciation Rent $ 504 $2,130 Miscellaneous $ 860 $ 0.20 In November, the pizzeria budgeted for 1,950 pizzas at an average selling price of $20 per pizza and for 190 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Results Pizzas Deliveries Revenue Kitchen staff 2,050 170 $ 41,680 Pizza ingredients $ 9,550 $ 6,110 Utilities Delivery person $ 950 $ 578 Delivery vehicle Equipment depreciation Rent Miscellaneous $ 1,012 $ 504 $ 2,130 $ 868
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