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Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as we 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 we 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 4.50 6,370 Kitchen staff 840 $0.60 Uti ties Delivery person 3.40 8600 Delivery vehicle 1.50 584 Equipment depreciation 2,330 Rent 960 0.10 Miscellaneous In November, the pizzeria budgeted for 2,250 pizzas at an average selling price of $22 per pizza and for 210 deliveries Data concerning the pizzeria's operations in November appear below: Actual Results 2,350 Pizzas Deliveries 190 $52,480 Revenue Pizza ingredients $11,350 Kitchen staff 6,310 1,000 Utilities Delivery person 646 1,032 Delivery vehicle Equipment depreciation 584 2,330 Rent 928 Miscellaneous
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