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Problem 9-20 More Than One Cost Driver [LO9-4, LO9-5] Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as
Problem 9-20 More Than One Cost Driver [LO9-4, LO9-5] 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 S 4.10 Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous 6,290 $ 800 $ 0.20 s 3.00 S 2.20 S 820 S 552 2,250 S 920 $ 0.10 In November, the pizzeria budgeted for 2,130 pizzas at an average selling price of $18 per pizza and for 250 deliveries Data concerning the pizzeria's operations in November appear below: Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Actual Results 2,230 230 $40,880 $10,630 $6,230 $ 980 $ 690 $1,024 $ 552 $ 2,250 $ 904
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