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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: Pizza ingredients Kitchen staff Utilities Delivery person Fixed Cost Cost per per Month Pizza $ 4.30 Cost per Delivery $ 6,110 $ 710 $ 0.30 $730 $ 480 $ 3.10 $ 1.30 Delivery vehicle Rent Equipment depreciation $ 2,070 $830 Miscellaneous $ 0.15 In November, the pizzeria budgeted for 1,860 pizzas at an average selling price of $17 per pizza and for 240 deliveries. Data concerning the pizzeria's actual results in November were as follows: Pizzas Deliveries Revenue Pizza ingredients: Kitchen staff Utilities Delivery person Delivery vehicle Actual Results 1,9601 220 $ 33,970 $9,010 $ 6,050 $935 $682 $ 1.006
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