Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

image text in transcribedimage text in transcribed

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 Delivery Pizza ingredients Kitchen staff Utilities Delivery persorn Delivery vehicle $ 4.10 $6,070 0.10 $ 690 $ 710 $2,030 $2.90 $2.30 Equipment depreciation 464 Rent Miscellaneous $ 810 $ 0.05 In November, the pizzeria budgeted for 1,800 pizzas at an average selling price of $15 per pizza and for 220 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Pizzas Deliveries Results 1,900 200 Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous 29,130 $ 8,650 $ 6,010 925 $ 580 $ 1,002 $ 464 $ 2,030 $ 838

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Construction Industry IRS Audit Techniques Guide

Authors: Internal Revenue Service

1st Edition

1304131920, 978-1304131928

More Books

Students also viewed these Accounting questions

Question

5. Have you stressed the topics relevance to your audience?

Answered: 1 week ago