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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. Data concerning the pizzeria's costs appear below: Fixed Cost Cost per Cost per per Month Pizza Delivery Pizza ingredients 4.60 5,950 Kitchen staff 630 $0.50 Utilities Delivery person 3.30 650 Delivery vehicle 1.70 Equipment depreciation 416 Rent 1,910 750 $0.25 Miscellaneous In November, the pizzeria budgeted for 1,620 pizzas at an average selling price of $17 per pizza and for 240 deliveries Data concerning the pizzeria's operations in November appear below: Actual Results 1,720 Pizzas Deliveries 220 $29,810 Revenue 7,570 Pizza ingredients Kitchen staff 5,890 Utilities 895 Delivery person 726 990 Delivery vehicle Equipment depreciation 416 1,910 Rent Miscellaneous 802
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