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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.

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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 driversthe number of pizzas sold and the number of deliveries made. The pizzeria's cost formulas appear below: Fixed Cost per Month Cost per Pizza Pizza $ 4.50 cost per Deliv Delivery $6,150 $ 730 $ 0.50 Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $3.30 $1.50 $ 750 $ 496 $2,110 $ 850 $ 0.25 In November, the pizzeria budgeted for 1,920 pizzas at an average selling price of $19 per pizza and for 180 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Results 2,020 160 Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous uuuuuuuuu $ 39,050 $ 9,370 $ 6,090 $ 945 $ 528 1,010 $ 496 $ 2,110 $ 862 Required: Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Flexible Budget Planning Budget Pizzas Actual Results 2,020 160 Deliveries Revenue $ 39,050 Expenses: 9,370 Pizza ingredients Kitchen staff 6,090 Utilities 945 Delivery person 528 Delivery vehicle 1,010 Equipment depreciation 496 Rent 2,110 Miscellaneous Total expense Net operating income 862 21,411 17,639 $

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