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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.
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: Fixed Cost Cost per Cost per per Month Pizza $ 4.30 Delivery Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $5,890 $ 600 $ 0.20 $3.00 $1.40 $ 620 $ 392 $1,850 $ 720 $ 0.10 In November, the pizzeria budgeted for 1,530 pizzas at an average selling price of $14 per pizza and for 210 deliveries Data concerning the pizzeria's actual results in November appear below: Actual Pizzas Deliveries Results 1,630 190 Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 23,360 $ 7,030 $5,830 880 $570 $984 $ 392 $ 1,850 $784
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