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Please have a typed response Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out
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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: Fixed Cost per Cost per Cost per Month Pizza Delivery Pizza ingredients Kitchen staff $6,090 Utilities Delivery person Delivery vehicle Equipment depreciation472 Rent Miscellaneous 820 $0.10 $4.20 $ 700 $0.20 $3.00 $ 720 $1.20 $2,050 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: Actual Results 1,930 210 $31,520 Pizza ingredients $ 8,830 6,030 $ 930 $ 630 Delivery vehicle 1,004 Pizzas Deliveries Revenue Kitchen staff Utilities Delivery person Equipment depreciation Rent Miscellaneous $ 472 2,050 $ 844 Required 1. 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 (i.e., zero variance). Input all amounts as positive values.) Milano Pizza Revenue and Spending Variances For the Month Ended November 30 Revenue and Results Spending Variances Budget Actual Flexible 1,930 Pizzas Deliveries 210 $ 31,520 8,830 Revenue Expenses Pizza ingredients Kitchen staff 6,030 Required 1. 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 (i.e., zero variance). Input all amounts as positive values.) Milano Pizza Revenue and Spending Variances For the Month Ended November 30 Revenue and Results Spending Variances Budget Actual Flexible 1,930 210 Pizzas Deliveries $31,520 Revenue Expenses Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment 8,830 6,030 930 630 1,004 472 2,050 844 20,790 10,730 depreciation Rent Miscellaneous Total expense Net operating incomeStep by Step Solution
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