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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 4.80 5,990 Kitchen staff 650 $0.70 Utilities 3.50 Delivery person 670 Delivery vehicle 1.90 432 Equipment depreciation 1,950 Rent Miscellaneous 770 $0.10 In November, the pizzeria budgeted for 1,680 pizzas at an average selling price of $19 per pizza and for 180 deliveries Data concerning the pizzeria's operations in November appear below: Actual Results Pizzas 1,780 Deliveries 160 $34,410 Revenue 7,930 Pizza ingredients Kitchen staff 5,930 905 Utilities 560 Delivery person 994 Delivery vehicle 432 Equipment depreciation 1,950 Rent Miscellaneous 814
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