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Problem 8-19A More Than One Cost Driver [L08-2, L08-3] Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as

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Problem 8-19A More Than One Cost Driver [L08-2, L08-3] 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. Data concerning the pizzeria's costs appear below: Fixed Cost Cost per Cost per per Month Pizza Delivery 4.40 Pizza ingredients 6,130 Kitchen staff Utilities 720 0.40 Delivery person 3.20 740 1.40 Delivery vehicle 488 Equipment depreciation 2,090 Rent 840 0.20 Miscellaneous In November, the pizzeria budgeted for 1,890 pizzas at an average selling price of $18 per pizza and for 250 deliveries Data concerning the pizzeria's operations in November appear below: Actual Results 1,990 Pizzas Deliveries 230 $36,480 Revenue 9,190 Pizza ingredients 6,070 Kitchen staff 940 Utilities 736 Delivery person 1,008 Delivery vehicle 488 Equipment depreciation 2,090 Rent 856 Miscellaneous

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