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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 $ 4.80 Cost per Delivery Kitchen staff Utilities $ 6,210 $ 760 $ 0.80 Delivery person $ 2.60 Delivery vehicle $ 780 $ 1.80 Equipment depreciation Rent $ 520 $ 2,170 $ 880 $ 0.20 Miscellaneous In November, the pizzeria budgeted for 2,010 pizzas at an average selling price of $14 per pizza and for 210 deliveries. Data concerning the pizzeria's actual results in November were as follows: Pizzas Deliveries Revenue Actual Results 2,110 190 $ 30,240 Pizza ingredients Kitchen staff $ 9,910 $ 6,150 Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 960 $ 494 $ 1,016 $ 520 $ 2,170 $ 880
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