Verona Pizza is a small neighborhood pizzeria that has a small area for in-store
ID: 2716771 • Letter: V
Question
Verona Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well offering takeout 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:
Compute the revenue and spending variances for the pizzeria for October. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
Verona Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well offering takeout 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:
Explanation / Answer
Flexible ACtual Revenue and spending variance Revenue 23800 [1700*14] 24240 440 F Expenses Pizza ingrdients 8500 [1700*5] 8550 -50 U kitchen staff 6600 6540 60 F utilities 680 [(1700*.1)+510] 805 -125 U Delievery staff 580 [2.9*200] 580 - Delievery vehicle 950 [(1.4*200)+670] 1090 -140U equipment dep 382 382 - Rent 1740 1740 - Miscellaneous 717 [(1700*.01) +700] 709 8 F Total expense 20149 20396 247 U net operating income 3651 3844 193 F
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