Austin Food & Beverage Company recently opened for business. The company operates a mobile restaurant van in downtown Austin that offers customers a variety of individual pizzas during lunchtime. Each pizza was sold for $10. The company sold 2,000 pizzas during May and had the following information available for that month:

	Total cost
Flour, cheese and other ingredients	4,000
Wages for chef	1,800
Rent on van and equipment	3,160
Salaries for administrative staff	2,000
Gas for van	3,300
Miscellaneous supplies (napkins, wrappers, etc.)	600

For next month, the company is considering switching to cardboard boxes instead of using paper wrappers for the pizzas. They estimate that if they make the switch sales will increase 5% and variable costs will increase by $0.25 per pizza. Should the company make the change?

NOTE: As needed, round and state all per unit numbers to the nearest penny. All other amounts should be rounded and stated to the nearest dollar.

Required:

1. On your own paper (or in Word or Excel), prepare a contribution margin models to support your answer.
2. Upload a picture of your paper (or a file if using Word or Excel).