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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: Fixed Cost per Month Pizza ingredients Cost per Pizza $ 4.10 Cost per Delivery Kitchen staff Utilities $ 6,290 $ 800 $ 0.20 Delivery person Delivery vehicle $ 820 $ 3.00 $ 2.20 Equipment depreciation Rent $ 552 $ 2,250 $ 920 $ 0.10 Miscellaneous 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 pizzeria's actual results in November were as follows: Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Actual Results 2,230 230 $ 40,880 $ 10,630 $ 6,230
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