Question
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 $ 4.30 Cost per Delivery Kitchen staff Utilities $ 6,330 $ 820 $ 0.40 Delivery person Delivery vehicle $ 840 $ 3.20 $ 1.30 Equipment depreciation $ 568 $ 2,290 $ 940 $ 0.20 Rent Miscellaneous In November, the pizzeria budgeted for 2,190 pizzas at an average selling price of $20 per pizza and for 190 deliveries. Data concerning the pizzeria's actual results in November were as follows: Pizzas Deliveries Revenue Kitchen staff Pizza ingredients Actual Results 2,290 170 $ 46,560 $ 10,990 $ 6,270 Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Required: $ 990 $ 544 $ 1,028 $ 568 $ 2,290 $ 916
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