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.

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. The pizzerias cost formulas appear below: Fixed Cost per Month Cost per Pizza Cost per Delivery Pizza ingredients $ 4.10 Kitchen staff $ 6,290 Utilities $ 800 $ 0.20 Delivery person $ 3.00 Delivery vehicle $ 820 $ 2.20 Equipment depreciation $ 552 Rent $ 2,250 Miscellaneous $ 920 $ 0.10 In November, the pizzeria budgeted for 2,130 pizzas at an average selling price of $18 per pizza and for 250 deliveries. Data concerning the pizzerias actual results in November appear below: Actual Results Pizzas 2,230 Deliveries 230 Revenue $ 40,880 Pizza ingredients $ 10,630 Kitchen staff $ 6,230 Utilities $ 980 Delivery person $ 690 Delivery vehicle $ 1,024 Equipment depreciation $ 552 Rent $ 2,250 Miscellaneous $ 904

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_2

Step: 3

blur-text-image_3

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

Fundamental Financial Accounting Concepts Paperback By Edmonds Thomas P O

Authors: Thomas P. Edmonds, Christopher Edmonds, Mark A. Edmonds, Jennifer Edmonds, Philip R. Olds

11th Edition

9781264266234, 1264266235

More Books

Students also viewed these Accounting questions