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Problem 9-19 (Algo) More Than One Cost Driver [LO9-2, LO9-3, L09-5, LO9-6] Milano Pizza is a small neighborhood pizzeria that has a small area
Problem 9-19 (Algo) More Than One Cost Driver [LO9-2, LO9-3, L09-5, LO9-6] 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 t number of deliveries made. The pizzeria's cost formulas appear below. Fixed Cost per Month Pizza ingredients Cost per Pizza $ 4.40 Cost per Delivery Kitchen staff Utilities $ 6,350 $ 830 $ 0.50 Delivery person $ 850 $ 3.30 $ 1.40 Equipment depreciation $ 576 $ 2,310 $ 950 $ 0.25 Delivery vehicle Rent Miscellaneous In November, the pizzeria budgeted for 2,220 pizzas at an average selling price of $21 per pizza and for 200 deliveries. Data concerning the pizzeria's actual results in November were as follows: Pizzas Deliveries Revenue Actual Results 2,320 180 $ 49,490 Pizza ingredients $ 11,170 Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation $ 6,290 $ 995 $ 594 $ 1,030 $576
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