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 pizzerias owner has determined that the shop has two major cost driversthe number of pizzas sold and the number of deliveries made.

Data concerning the pizzerias costs appear below:

	Fixed Cost per Month			Cost per Pizza			Cost per Delivery
Pizza ingredients				$	4.70
Kitchen staff	$	6,190
Utilities	$	750		$	.70
Delivery person							$	3.50
Delivery vehicle	$	770					$	1.70
Equipment depreciation	$	512
Rent	$	2,150
Miscellaneous	$	870		$	.10

In November, the pizzeria budgeted for 1,980 pizzas at an average selling price of $13 per pizza and for 200 deliveries.

Data concerning the pizzerias operations in November appear below:

Actual Results

Pizzas

2,080

Deliveries

180

Revenue

$

27,730

Pizza ingredients

$

9,730

Kitchen staff

$

6,130

Utilities

$

955

Delivery person

$

630

Delivery vehicle

$

1,014

Equipment depreciation

$

512

Rent

$

2,150

Miscellaneous

$

874

Milano Pizza
Flexible Budget Performance Report
For the Month Ended November 30
	Actual Results	Revenue and Spending Variances		Flexible Budget	Activity Variances		Planning Budget
Revenue	$27,730		F			F
Expenses:
Pizza ingredients	9,730		F
Kitchen staff	6,130
Utilities	955		None
Delivery person	630
Delivery vehicle	1,014
Equipment depreciation	512
Rent	2,150
Miscellaneous	874
Total expense	21,995			0
Net operating inco5735