3.60 points Milano Pizza is a small neighborhood pizzeria that has a small area

Question

3.60 points 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 per Month Cost per Pizza S 4.60 Cost per Delivery Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle S 6,170 S 740 S 0.60 3.40 S 1.60 $ 760 S 504 $ 2,130 S 860 Rent Miscellaneous S 0.20

Explanation / Answer

Actual Revenue and Spending variances Flexible budget Activity variances Planning budget Revenue 41680 680 F 41000 2000 F 39000 Expenses: Pizza ingredient 9550 120 U 9430 460 U 8970 Kitchen staff 6110 60 F 6170 0 None 6170 Utilities 950 1020 F 1970 60 U 1910 Delivery person 578 0 None 578 68 F 646 Delivery vehicle 1012 20 F 1032 32 F 1064 Equipment depreciation 504 0 None 504 0 None 504 Rent 2130 0 None 2130 0 None 2130 Miscellaneous 868 402 F 1270 20 U 1250 Total expense 21702 1382 F 23084 440 U 22644 Net operating income 19978 2062 F 17916 1560 F 16356

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