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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. Data concerning the pizzeria's costs appear below: Fixed Cost Cost per Cost per per Month Pizza Delivery Pizza ingredients 4.30 Kitchen staff 5,890 600 $0.20 Utilities Delivery person 3.00 Delivery vehicle 620 1.40 392 Equipment depreciation 1,850 Rent 720 $0.10 Miscellaneous In November, the pizzeria budgeted for 1,530 pizzas at an average selling price of $14 per pizza and for 210 deliveries. Data concerning the pizzeria's operations in November appear below: Actual Results Pizzas 1.630 Deliveries 190 $23,360 Revenue 7,030 Pizza ingredients Kitchen staff 5,830 880 Utilities Delivery person 570 Delivery vehicle 984 392 Equipment depreciation 1,850 Rent Miscellaneous 784
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