Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining...
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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 Delivery per Month Pizza Pizza ingredients 4.70 6,190 Kitchen staff .70 Utilities 750 3.50 Delivery person Delivery vehicle 770 1.70 Equipment depreciation 512 2,150 Rent .10 Miscellaneous 870 In November, the pizzeria budgeted for 1,980 pizzas at an average selling price of $13 per pizza and for 200 deliveries. Data concerning the pizzeria's operations in November appear below: Actual Results Pizzas 2,080 Deliveries 180 27,730 Revenue 9,730 Pizza ingredients Kitchen staff 6,130 955 Utilities 630 Delivery person 1,014 Delivery vehicle Equipment depreciation 512 Rent 2,150 874 Miscellaneous
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