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Streeterville Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well offering takeout and free home delivery services. The
Streeterville Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well offering takeout 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 Cost Fixed Cost Cost pere per Month Pizza Delivery Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $5.00 $5,800 $ 520 0.10 $2.90 $2.10 680 $ 387 $1,730 730 $ 0.01 In October, the pizzeria budgeted for 2,000 pizzas at an average selling price of $13.00 per pizza and for 190 deliveries. Data concerning the pizzeria's operations in October appear below: Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Actual Results 2,100 190 $27,840 $ 10,550 $ 5,740 $ 855 S 551 $ 1,233 S 387 $ 1,730 $ 743
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