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. The pizzerias cost formulas appear below: Fixed Cost per Month Cost per Pizza Cost per Delivery Pizza ingredients $ 4.50 Kitchen staff $ 6,370 Utilities $ 840 $ 0.60 Delivery person $ 3.40 Delivery vehicle $ 860 $ 1.50 Equipment depreciation $ 584 Rent $ 2,330 Miscellaneous $ 960 $ 0.10 In November, the pizzeria budgeted for 2,250 pizzas at an average selling price of $22 per pizza and for 210 deliveries. Data concerning the pizzerias actual results in November appear below: Actual Results Pizzas 2,350 Deliveries 190 Revenue $ 52,480 Pizza ingredients $ 11,350 Kitchen staff $ 6,310 Utilities $ 1,000 Delivery person $ 646 Delivery vehicle $ 1,032 Equipment depreciation $ 584 Rent $ 2,330 Miscellaneous $ 928

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 Cost per Pizza $ 4.50 Cost per Delivery $6,370 $ 840 $ 0.60 Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $3.40 $1.50 $ 860 $ 584 $2,330 $ 960 $ 0.10 In November, the pizzeria budgeted for 2,250 pizzas at an average selling price of $22 per pizza and for 210 deliveries. Data concerning the pizzeria's actual results in November appear below: Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Actual Results 2,350 190 $ 52,480 $ 11,350 $ 6,310 $ 1,000 $ 646 $ 1,632 $ 584 $ 2,330 $ 928 Revenue and Spending Variances For the Month Ended November 30 Actual Revenue and Spending Results Variances 2.350 190 Flexible Budget Pizzas Deliveries Revenue $ 52,480 Expenses: Pizza ingredients Kitchen staff 11,350 6,310 1,000 Utilities Delivery person 646 1,032 Delivery vehicle Equipment depreciation Rent Miscellaneous Total expense Net operating income 584 2,330 928 24.180 28,300 $