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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
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: Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle. ces Equipment depreciation Rent Miscellaneous Fixed Cost Cost per per Month Pizza $4.40 Cost per Delivery $5,910 $610 $ 0.30 $630 $400 $3.10 $1.50 51,870 $730 $0.35 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 were as follows Pizzas Deliveries Revenue Pizze Ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Actual Results 1,660 200 $ 25,450 $ 7,210 $5,850 $885 $620 5.986) $ 400 Prov Next >
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