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PROBLEM 9-19 More than One Cost Driver 62 LO9-2,-72 LO9-3,
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.Fixed Costper MonthCost perPizzaCost perDeliveryPizza ingredients$3.80Kitchen staff$630$0.05Utilities$3.50Delivery person$540$1.50Delivery vehicle$275Equipment depreciation$1,830Rent$820$0.15Miscellaneous
In November, the pizzeria budgeted for 1,200 pizzas at an average selling price of $13.50 per pizza and for 180 deliveries.
Data concerning the pizzeria's actual results in November were as follows:
\table[[Pizzas,Actual Results],[Deliveries,1,240],[Revanne,174]]
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