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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 services.
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 Cost per Delivery Cost Pizza s4.80 s0.80 per Month Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle $6,210 $ 760 $2.60 $1.80 $ 780 Equipment depreciation 520 $2,170 $ 880 Rent Miscellaneous s0.20 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 appear below
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