Question: Problem 9-20 More Than One Cost Driver [LO9-4, LO9-5] Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as
Problem 9-20 More Than One Cost Driver [LO9-4, LO9-5] 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 per Month Pizza Delivery Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $4.50 $6,150 $ 730 $ 0.50 S 3.30 S 1.50 $ 750 $ 496 $2,110 $ 850 $0.25 In November, the pizzeria budgeted for 1,920 pizzas at an average selling price of $19 per pizza and for 180 deliveries. Data concerning the pizzeria's operations in November appear below: Actual Results 2,020 Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous 160 $39,050 $9,370 6,090 $ 945 S 528 1,010 S 496 2,110 $862
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
