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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.

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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. 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 $4.40 Cost per Delivery Pizza ingredients Kitchen staff Utilities $5,910 610 $ 0.30 Delivery person Delivery vehicle Equipment depreciation Rent $3.10 $1.50 630 400 $1,870 Miscellaneous 730 $ 0.15 In November, the pizzeria budgeted for 1,560 pizzas at an average selling price of $15 per pizza and for 220 deliveries. Data concerning the pizzeria's actual results in November appear below Actual Results Pizzas Deliveries 1,660 200 Revenue $ 25,450 $ 7,210 5,850 885 Pizza ingredients Kitchen staff Utilities nelivarr narenn 620 Check In November, the pizzeria budgeted for 1,560 pizzas at an average selling price of $15 per pizza and for 220 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Results Pizzas Deliveries Revenue Pizza ingredients Kitchen staff 1,660 200 $ 25,450 $ 7,210 $ 5,850 885 Utilities Delivery person Delivery vehicle Equipment depreciation 620 986 $ 1,870 $ 400 Rent Miscellaneous 790 Required: 1.Compute the revenue and spending variances for the pizzeria for November. (Indicate the effect of each variance by selectir for favorable, "U" for unfavorable, and "None" for no effect (i., zero variance). Input all amounts as positive values.) Milano Pizza Revenue and Spending Variances For the Month Ended November 30 Actual Results Revenue and Spending Variances Flexible Budget pirrae 1 RRn Drot Milano Pizza Revenue and Spending Variances For the Month Ended November 30 Revenue and Spending Variances Actual Results Flexible Budget Pizzas 1,660 Deliveries 200 Revenue $ 25,450 Expenses: Pizza ingredients 7,210 Kitchen staff 5,850 Utilities 885 Delivery person 620 Delivery vehicle 986 Equipment depreciation 400 Rent 1,870 Miscellaneous 790 Total expense -18,611 Net operating income $ 6,839

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