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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. The pizzeria's cost formulas appear below: Fixed Cost Cost per Delivery Cost per per Month Pizza $ 3.80 Pizza ingredients Kitchen staff $ 5,220 Utilities $630 $ 0.05 Delivery person Delivery vehicle Equipment depreciation $ 540 $ 275 $ 1,830 $ 820 $ 3.50 $ 1.50 Rent Miscellaneous $ 0.15 In November, the pizzeria budgeted for 1,200 pizzas at an average selling price of $13.50 per pizza and for 180 deliveries.

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 Delivery Cost per per Month Pizza $ 3.80 Pizza ingredients Kitchen staff $ 5,220 Utilities $630 $ 0.05 Delivery person Delivery vehicle Equipment depreciation $ 540 $ 275 $ 1,830 $ 820 $ 3.50 $ 1.50 Rent Miscellaneous $ 0.15 In November, the pizzeria budgeted for 1,200 pizzas at an average selling price of $13.50 per pizza and for 180 deliveries.

Essentials of Business Analytics (MindTap Course List)
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter13: Nonlinear Optimization Models
Section: Chapter Questions
Problem 5P: Jims Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demand for these two...
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C Access to this pag... 9 studymoose.com ... 8b Erylast Maps Translate Saved Help Sa sp 2022 i 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 Pizza ingredients $ 3.80 $ 5,220 $ 630 Kitchen staff Utilities $ 0.05 $ 3.50 $ 1.50 Delivery person Delivery vehicle Equipment depreciation $ 540 $ 275 $ 1,830 $ 820 Rent Miscellaneous $ 0.15 In November, the pizzeria budgeted for 1,200 pizzas at an average selling price of $13.50 per pizza and for 180 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results 1,240 174 Pizzas Deliveries $ 17,420 $ 4,985 $5,281 $984 $609 $ 655 $ 275 $ 1,830 $ 954 Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Required: 1. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
Transcribed Image Text:C Access to this pag... 9 studymoose.com ... 8b Erylast Maps Translate Saved Help Sa sp 2022 i 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 Pizza ingredients $ 3.80 $ 5,220 $ 630 Kitchen staff Utilities $ 0.05 $ 3.50 $ 1.50 Delivery person Delivery vehicle Equipment depreciation $ 540 $ 275 $ 1,830 $ 820 Rent Miscellaneous $ 0.15 In November, the pizzeria budgeted for 1,200 pizzas at an average selling price of $13.50 per pizza and for 180 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results 1,240 174 Pizzas Deliveries $ 17,420 $ 4,985 $5,281 $984 $609 $ 655 $ 275 $ 1,830 $ 954 Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Required: 1. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
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