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 Cost per per Month Pizza Delivery $ 4.20 Pizza ingredients Kitchen staff. Utilities $6,310 $ 810 $ 0.30 Delivery person Delivery vehicle Equipment depreciation $3.10 $1.20 $ 830 $ 560 $ 2,270 $ Rent Miscellaneous 930 $ 0.15 In November, the pizzeria budgeted for 2,160 pizzas at an average selling price of $19 per pizza and for 180 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results Pizzas Deliveries 2,260 160 $ 43,690 $ 10,810 $ $ $ 2$ Revenue Pizza ingredients Kitchen staff 6,250 Utilities 985 Delivery person Delivery vehicle Equipment depreciation 496 1,026 $ 2,270 $ 560 Rent Miscellaneous 910
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 Cost per per Month Pizza Delivery $ 4.20 Pizza ingredients Kitchen staff. Utilities $6,310 $ 810 $ 0.30 Delivery person Delivery vehicle Equipment depreciation $3.10 $1.20 $ 830 $ 560 $ 2,270 $ Rent Miscellaneous 930 $ 0.15 In November, the pizzeria budgeted for 2,160 pizzas at an average selling price of $19 per pizza and for 180 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results Pizzas Deliveries 2,260 160 $ 43,690 $ 10,810 $ $ $ 2$ Revenue Pizza ingredients Kitchen staff 6,250 Utilities 985 Delivery person Delivery vehicle Equipment depreciation 496 1,026 $ 2,270 $ 560 Rent Miscellaneous 910
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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