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Problem 9-21 More Than One Cost Driver [LO9-2, LO 9-3, LO 9-4, LO9-5) Milano Pizza is a small neighborhood pizzeria that has a small area
Problem 9-21 More Than One Cost Driver [LO9-2, LO 9-3, LO 9-4, 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. The pizzeria's cost formulas appear below Fixed cost Cost per Month Pizza Delivery cost per per Pizza ingredients Kitchen staff $6,270 Utilities Delivery person Delivery vehicle Equipment depreciation 544 $4.00 790 $0.10 $2.90 $2.10 810 Rent $2,230 Miscellaneous 910 $0 .05 In November, the pizzeria budgeted for 2100 pizzas at an average selling price of $17 per pizza and for 240 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Results 2,200 220 Pizzas Deliveries Revenue Kitchen staff $38,130 Pizza ingredients $10,450 s 6,210 $975 Delivery person638 Delivery vehicle 1,022 Utilities Equipment depreciation Rent Miscellaneous $ 544 $ 2,230 $898
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