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Milano Plzza 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.

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Milano Plzza 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: Fixed Cost Cost per Cost per Pizza ingredients Kitchen staff veilities Delivery person Delivery vehicle Equipment depreeiation 584 Rent $ 4.50 $6,370 840 0.60 $3.40 $1.50 860 $2,330 960 0.10 In November, the pizzeria budgeted for 2,250 pizzas at an average selling price of $22 per pizza and for 210 dliveries. Data concerning the pizzeria's actual results in November appear below: Results 2,350 190 Deliveries s 52,480 s 11,350 $ 6,31 Delivery person Delivery vehicle Equipment depreciation 1,000 S 646 s 1,032 584

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