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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 pizzerias owner has determined that the shop has two major cost driversthe number of pizzas sold and the number of deliveries made. Data concerning the pizzerias costs appear below: Fixed Cost per Month Cost per Pizza Cost per Delivery Pizza ingredients $ 3.80 Kitchen staff $ 5,220 Utilities $ 630 $ 0.05 Delivery person $ 3.50 Delivery vehicle $ 540 $ 1.50 Equipment depreciation $ 275 Rent $ 1,830 Miscellaneous $ 820 $ 0.15 In November, the pizzeria budgeted for 1,200 pizzas at an average selling price of $13.50 per pizza and for 180 deliveries.

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