Milano Pizza is a small neighborhood pizzeria that has a small area for in-store
ID: 2564661 • Letter: M
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 number of deliveries made. The pizzeria's cost formulas appear below services. The pizzeria's owner has determined that the shop has two major cost drivers-the number of pizzas sold and the os Month Pizza Delivery 3.88 Pizza ingredients Kitchen staff utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous s 5,228 s 638 $8.0 $ 3.50 S 1.50 S 540 S 275 $ 1,830 $ 820 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 appear below Actual Results Pizzas Deliveries 1,240 174 Pizza ingredients Kitchen staff utilities Delivery person Delivery vehicie s 17,420 S 4,985 s 5,281 984 S 609 s 655 Prey 3 or 3 e to search 9Explanation / Answer
Flexible budget performance report :
Actual results Revenue & spending variance Flexible budget Activity variance Planning budget Pizzas 1240 1240 1200 Deliveries 174 174 180 Revenue 17420 680 F 16740 540 F 16200 Expenses Pizza ingredients 4985 273 U 4712 152 U 4560 Kitchen staff 5281 61 U 5220 None 5220 Utilities 984 292 U 692 2 U 690 Delivery person 609 None 609 21 F 630 Delivery vehicle 655 146 F 801 9 F 810 Equipment depreciation 275 None 275 None 275 Rent 1830 None 1830 None 1830 Miscellaneous 954 52 F 1006 6 U 1000 Total expenses 15573 428 U 15145 130 U 15015 Net operating income 1847 252 F 1595 410 F 1185