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Check my work Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and
Check my work 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. Pizza ingredients Kitchen staff Utilities Fixed Cost per Month $ 5,910 $ 610 Cost per Pizza $4.40 $ 0.30 Cost per Delivery Delivery person Delivery vehicle Equipment depreciation. Rent Miscellaneous $630 $ 400 $ 1,870 $730 $ 0.15 $ 3.10 $1.50 In November, the pizzeria budgeted for 1,560 pizzas at an average selling price of $15 per pizza and for 220 deliveries. Data concerning the pizzeria's actual results in November were as follows:
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