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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
Milano Pizza is a small neighborhood pizzeria that has a small area for instore dining as well as offering takeout and free home delivery services. The pizzerias owner has determined that the shop has two major cost driversthe number of pizzas sold and the number of deliveries made.
The pizzerias cost formulas appear below:
Fixed Cost per Month Cost per Pizza Cost per Delivery
Pizza ingredients $
Kitchen staff $
Utilities $ $
Delivery person $
Delivery vehicle $ $
Equipment depreciation $
Rent $
Miscellaneous $ $
In November, the pizzeria budgeted for pizzas at an average selling price of $ per pizza and for deliveries.
Data concerning the pizzerias actual results in November appear below:
Actual Results
Pizzas
Deliveries
Revenue $
Pizza ingredients $
Kitchen staff $
Utilities $
Delivery person $
Delivery vehicle $
Equipment depreciation $
Rent $
Miscellaneous $
Required:
Compute the revenue and spending variances for the pizzeria for November. Indicate the effect of each variance by selecting F for favorable, U for unfavorable, and \"None\" for no effect ie zero variance Input all amounts as positive values.
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