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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 Cost per per Month Pizza Cost per Delivery Pizza ingredients Kitchen staff Utilities $ 4.20 $ 6,310 $ 810 5 0.30 Delivery person Delivery vehicle $ 830 $ 3.10 $ 1.20 Equipment depreciation Rent $ 560 $ 2,270 Miscellaneous $ 930 $ 0.15 In November, the pizzeria budgeted for 2,160 pizzas at an average selling price of $19 per pizza and for 180 deliveries. Data concerning the pizzeria's actual results in November were as follows: Pizzas Actual Results 2,260 160 Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation. Rent $ 43,690 $ 10,810 $6,250 $ 985 $ 496 $ 1,026 $ 560 $ 2,270
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