Business, 07.06.2021 03:10 bellajuliet13

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 per Cost per
per Month Pizza Delivery
Pizza ingredients $5.00
Kitchen staff $6,030
Utilities $670 $0.90
Delivery person $2.70
Delivery vehicle $690 $2.10
Equipment depreciation $448
Rent $1,990
Miscellaneous $790 $0.15
In November, the pizzeria budgeted for 1,740 pizzas at an average selling price of $13 per pizza and for 200 deliveries. Data concerning the pizzeria’s actual results in November appear below:
Actual Results
Pizzas 1,840
Deliveries 180
Revenue $24,530
Pizza ingredients 8,290
Kitchen staff $5,970
Utilities $915
Delivery person $486
Delivery vehicle $998
Equipment
depreciation $448
Rent $1,990
Miscellaneous $826
Required:
Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November.

Answers: 3

Show answers

Answers

Answer from: Kelshonti15

Milano Pizza

Flexible Budget Performance Report for November

Static Flexible Actual Variances

Budget Budget Results Spending Activity

Sales Revenue $22,620 $23,920 $24,530 $610 F $1,300 F

Pizza ingredients $8,700 $9,200 $8,290 $910 F $500 U

Kitchen staff 6,030 $6,030 5,970 60 F 0 N

Utilities 2,236 $2,326 915 1,411 F 90 U

Delivery person 540 $486 486 0 N 54 F

Delivery vehicle 1,110 $1,068 998 70 F 42 F

Equipment depreciation 448 $448 448 0 N 0 N

Rent 1,990 $1,990 1,990 0 N 0 N

Miscellaneous 1,051 $1,066 826 240 F 15 U

Total expenses $22,105 $22,614 $19,923 $2,691 F $509 U

Explanation:

a) Data and Calculations:

Pizzeria's Cost Formulas:

Fixed Cost Cost per Cost per Static

per Month Pizza Delivery Budget

Pizza ingredients $5.00 $8,700

Kitchen staff $6,030 6,030

Utilities $670 $0.90 2,236

Delivery person $2.70 540

Delivery vehicle $690 $2.10 1,110

Equipment depreciation $448 448

Rent $1,990 1,990

Miscellaneous $790 $0.15 1,051

Budgeted pizzas for November = 1,740

Average selling price per pizza = $13

Average deliveries for the month = 200

Sales revenue = $23,920 (1,840 * $13)

Flexing the budget:

Fixed Cost Cost per Cost per Flexible

per Month Pizza Delivery Budget

Pizza ingredients ($5.00 * 1,840) $9,200

Kitchen staff $6,030 6,030

Utilities $670 ($0.90 * 1,840) 2,326

Delivery person $2.70*180 486

Delivery vehicle $690 $2.10*180 1,068

Equipment depreciation $448 448

Rent $1,990 1,990

Miscellaneous $790 ($0.15*1,840) 1,066

Actual results in November:

Pizzas 1,840

Deliveries 180

Revenue $24,530

Pizza ingredients 8,290

Kitchen staff $5,970

Utilities $915

Delivery person $486

Delivery vehicle $998

Equipment depreciation $448

Rent $1,990

Miscellaneous $826

Answer from: Quest

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

Answer from: Quest

The answer is a i think

Another question on Business

Business, 22.06.2019 18:00

Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan

Answers: 2

Answer

Business, 22.06.2019 19:00

1. regarding general guidelines for the preparation of successful soups, which of the following statements is true? a. thick soups made with starchy vegetables may thin during storage. b. soups should be seasoned throughout the cooking process. c. finish a cream soup well before serving it to moderate the flavor. d. consommés take quite a long time to cool.

Answers: 2

Answer

Business, 22.06.2019 20:20

Faldo corp sells on terms that allow customers 45 days to pay for merchandise. its sales last year were $325,000, and its year-end receivables were $60,000. if its dso is less than the 45-day credit period, then customers are paying on time. otherwise, they are paying late. by how much are customers paying early or late? base your answer on this equation: dso - credit period = days early or late, and use a 365-day year when calculating the dso. a positive answer indicates late payments, while a negative answer indicates early payments.a. 21.27b. 22.38c. 23.50d. 24.68e. 25.91b

Answers: 2

Answer

Business, 22.06.2019 20:40

Aggart technologies is considering issuing new common stock and using the proceeds to reduce its outstanding debt. the stock issue would have no effect on total assets, the interest rate taggart pays, ebit, or the tax rate. which of the following is likely to occur if the company goes ahead with the stock issue? a. the roa will decline.b. taxable income will decline.c. the tax bill will increase.d. net income will decrease.e. the times-interest-earned ratio will decrease

Answers: 1

Answer

You know the right answer?

Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as o...

Questions