Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as...
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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: Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Fixed Cost Cost per per Month Pizza Cost per Delivery $ 4.20 $ 6,090 $ 700 $ 0.20 $ 3.00 $ 720 $ 1.20 $ 472 $ 2,050 $ 820 $ 0.10 In November, the pizzeria budgeted for 1,830 pizzas at an average selling price of $16 per pizza and for 230 deliveries. Data concerning the pizzeria's actual results in November appear below: Pizzas Deliveries Revenue Actual Results 1,930 210 $ 31,520 Pizza ingredients $ 8,830 Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 6,030 $ 930 $ 630 $ 1,004 $ 472 $ 2,050 $ 844 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 Fixed Cost Cost per per Month Pizza Cost per Delivery $ 4.20 $ 6,090 $ 700 $ 0.20 $ 3.00 $ 720 $ 1.20 $ 472 $ 2,050 $ 820 $ 0.10 In November, the pizzeria budgeted for 1,830 pizzas at an average selling price of $16 per pizza and for 230 deliveries. Data concerning the pizzeria's actual results in November appear below: Pizzas Deliveries Revenue Actual Results 1,930 210 $ 31,520 Pizza ingredients $ 8,830 Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 6,030 $ 930 $ 630 $ 1,004 $ 472 $ 2,050 $ 844
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