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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 The pizzeria's cost formulas appear below: Fixed Cost Cost per Cost per th Pizza $ 4.00 per Mon Delivery Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle $6,270 $ 790 $ 0.10 $2.90 $2.10 $ 810 Equipment depreciation 544 $2,230 $ 910 Rent Miscellaneous $ 0.05 In November, the pizzeria budgeted for 2,100 pizzas at an average selling price of $17 per pizza and for 240 deliveries Data concerning the pizzeria's actual results in November appear below: Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Actual Results 2,200 220 s 38,130 $ 10,450 $ 6,210 $975 $ 638 $ 1,02:2 $544 $ 2,230 $ 898
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