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Milano Pizza has a small area for in-store dining as well as offers take-out and free home delivery services. The pizzerias owner determined the shop
Milano Pizza has a small area for in-store dining as well as offers take-out and free home delivery services. The pizzerias owner determined the shop has two major cost driversthe number of pizzas sold and the number of deliveries made. The pizzerias cost formulas appear below: Fixed Cost per Month Cost per Pizza Cost per Delivery Pizza ingredients $ 5.00 Kitchen staff $ 6,030 Utilities $ 670 $ 0.90 Delivery person $ 2.70 Delivery vehicle $ 690 $ 2.10 Equipment depreciation $ 448 Rent $ 1,990 Miscellaneous $ 790 $ 0.15 In November, the pizzeria budgeted for 1,740 pizzas at an average selling price of $13 per pizza and for 200 deliveries. Data concerning the pizzerias
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