Question
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
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: Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation: Rent Miscellaneous Fixed Cost per Month Cost per Pizza $ 3.80 Cost per Delivery $ 5,220 $ 630 $ 0.05 $540 $ 3.50 $ 1.50 $275 $ 1,830 $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. Data concerning the pizzeria's actual results in November were as follows: Pizzas Deliveries Revenue Actual Results 1,2401 174 $ 17,420 < Prev 3 of 4 Next > Chec
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