Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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: Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Fixed Cost per Month Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 6,030 $ 670 $690 $ 448 $ 1,990 $ 790 Actual Results 1,840 180 Cost per Pizza $ 5.00 $ 0.90 In November, the pizzeria budgeted for 1,740 pizzas at an average selling price of $13 per pizza and for 200 deliveries. Data concerning the pizzeria's actual results in November were as follows: $ 24,530 $ 8,290 $ 5,970 $915 $486 $998 $448 $ 1,990 $ 826 $ 0.15 Cost per Delivery $2.70 $ 2.10
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started