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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
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 Kitchen staff Utilities Fixed Cost per Month Pizza ingredients Cost per Pizza $4.40 Cost per Delivery $ 5,910 $610 $ 0.30 $630 $ 3.10 $ 1.50 Equipment depreciation $400 Rent $ 1,870 $730 $ 0.15 Delivery person Delivery vehicle Miscellaneous In November, the pizzeria budgeted for 1,560 pizzas at an average selling price of $15 per pizza and for 220 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation. Rent Miscellaneous 1,660 200 $ 25,450 $ 7,210 $ 5,850 $ 885 $620 5 986 $400 $ 1,870 $790
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