Finance Assignment | Professional Writing

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: Pizza ingredients Kitchen staff Utility Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Fixed Cost Cost per Month Pizza Delivery $ 5.00 $ 6,250 $ 780 $ 1.00 $ 2.80 $ 800 $ 2.00 $ 536 $ 2,210 $ 900 $0.10 In November, the pizzeria budgeted for 2,070 pizzas at an average selling price of $16 per pizza and for 230 deliveries. Data concerning the pizzeria’s operations in November appear below: Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Actual Results 2,170 210 $35,440 $10,270 $ 6,190 $ 970 $ 588 $ 1,020 $ 536 $ 2.210 $ 892 Required:

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1. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November. (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Input all amounts as positive values.) Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Revenue and Spending Flexible Variances Budget Activity Variances Actual Results $ 35,440 Planning Budget Revenue Expenses: Pizza ingredients Kitchen staff Utilities 10,270 6,190 970 Delivery person 588 Delivery vehicle 1,020 536 Equipment depreciation Rent Miscellaneous 2,210 892 22,676 12,764 Total expense Net operating income $

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