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 per Month |
Cost per Pizza |
Cost per Delivery |
||||||||
Pizza ingredients | $ | 4.10 | ||||||||
Kitchen staff | $ | 6,070 | ||||||||
Utilities | $ | 690 | $ | 0.10 | ||||||
Delivery person | $ | 2.90 | ||||||||
Delivery vehicle | $ | 710 | $ | 2.30 | ||||||
Equipment depreciation | $ | 464 | ||||||||
Rent | $ | 2,030 | ||||||||
Miscellaneous | $ | 810 | $ | 0.05 | ||||||
In November, the pizzeria budgeted for 1,800 pizzas at an average selling price of $15 per pizza and for 220 deliveries.
Data concerning the pizzeria’s actual results in November appear below:
Actual Results | |||
Pizzas | 1,900 | ||
Deliveries | 200 | ||
Revenue | $ | 29,130 | |
Pizza ingredients | $ | 8,650 | |
Kitchen staff | $ | 6,010 | |
Utilities | $ | 925 | |
Delivery person | $ | 580 | |
Delivery vehicle | $ | 1,002 | |
Equipment depreciation | $ | 464 | |
Rent | $ | 2,030 | |
Miscellaneous | $ | 838 | |
1. Compute the revenue and spending variances for the pizzeria for November.
Revenue and spending variance
Revenue (28500-29130) | 630 F |
Expense | |
Pizza ingredients (7790-8650) | 860 U |
Kitchen staff (6010-6070) | 60 F |
Utilities (880-925) | 45 U |
Delivery person | 0 None |
Delivery vehicle (1170-1002) | 168 F |
Equipment depreciation | 0 None |
Rent | 0 None |
Miscellaneous | 67 F |
Total expense | 610 U |
Net operating income | 20 F |
Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as...
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 per Month Cost per Pizza Cost per Delivery Pizza ingredients $ 4.10 Kitchen staff $ 6,070 Utilities $ 690 $ 0.10 Delivery person $...
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 Cost per Delivery per Pizza per Month Pizza $4.10 ingredients Kitchen staff $6,070 Utilities Delivery person Delivery vehicle $ $0.10 690 $2.90 $...
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 per Month Cost per cost per Pizza Delivery $.4.10 $6,070 $ 690 $ 0.10 Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment...
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 per Month Cost per Pizza Cost per Delivery Pizza ingredients $ 4.40 Kitchen staff $ 6,130 Utilities $ 720 $ 0.40 Delivery person $...
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 per Month Cost per Pizza Cost per Delivery Pizza ingredients $ 4.50 Kitchen staff $ 6,370 Utilities $ 840 $ 0.60 Delivery person $...
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 per Month Cost per Pizza Cost per Delivery Pizza ingredients $ 4.90 Kitchen staff $ 6,010 Utilities $ 660 $ 0.80 Delivery person $...
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 per Month Cost per Pizza Cost per Delivery Pizza ingredients $ 4.50 Kitchen staff $ 6,150 Utilities $ 730 $ 0.50 Delivery person $...
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 per Month Cost per Pizza Cost per Delivery Pizza ingredients $ 4.50 Kitchen staff $ 5,930 Utilities $ 620 $ 0.40 Delivery person $...
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 per Month Cost per Pizza Cost per Delivery Pizza ingredients $ 4.20 Kitchen staff $ 6,310 Utilities $ 810 $ 0.30 Delivery person $...
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 per Month Cost per Pizza Cost per Delivery Pizza ingredients $ 4.30 Kitchen staff $ 5,890 Utilities $ 600 $ 0.20 Delivery person $...