Question

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. Cost per Pizza 4.48 cost per Delivery The pizzeria's cost formulas appear below. Fixed Cost per Month Pizza ingredients Kitchen staff 56,130 Utilities $ 720 Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous

Answer 1

1 А В Е Milano Pizza Revenue and Spending Variances For the Month Ending November 30 1 Actual Revenue and Flexible Spending Variances 1,990 2 Results Вudget 3 Pizzas 1,990 4 Deliveries 230 230 $660 F 6 Revenue $36,480 $35,820 7 Expenses: Pizza ingredients $434 U $60 F $576 F S0 None $54 F SO None $0 None $382 F $638 F $1,298 F $9,190 $8,756 8 Kitchen staff 9 $6,070 $940 S6,130 $1,516 10 Utilities Delivery person Delivery Vehicle Equipment depreciation Rent 11 $736 $736 12 $1,008 $1,062 $488 $488 13 14 S2,090 $2,090 $1,238 15 Miscellaneous $856 16 Total expenses $21,378 $22,016 $13.804 17 Net operating income $15,102

Calculations are shown below А В D Е Milano Pizza Revenue and Spending Variances For the Month Ending November 30 1 Revenue and Flexible Budget -B3 |ЕB4 2 Actual Results Spending 1990 230 3 Pizzas 4 Deliveries 5 -B6-E6 6 Revenue 7 Expenses: Pizza ingredients -E3* 18 36480 F B8-E8 U =E3 4.4 6130 = 720+(E3*0.4) 9190 6070 940 736 1008 8 =E9-B9 -E10-B10 F -E11-B11NoneE4*3.2 -E12-B12 F =E13-B13 |None 488 -E14-B14 |None 2090 =E15-B15 F F Kitchen staff Utilities 10 Delivery person 12 Delivery Vehicle 13 Equipment depreciation 488 11 = 740+ (E4*1.4) 2090 856 -SUM(B8.B15) E16-B16 F =B6-B16 14 Rent -840+(E3 *0.2) -SUM(E8.E15 -E6-E16 15 Miscellaneous 16 Total expenses B17-E17 F 17 Net operating income