Jacks brother, the advertising executive, is hounding him about running a monthly radio ad that would cost $250 per month. Industry analysis shows this will bring in 5% more in unit sales per month. If you decide to run the ad for one month, how would the CVP analysis change? Would you recommend the ad?

TABLE 1: COST INFORMATION

Supplies	Cost	Standard per pizza
Pizza Oven	Donated by Jacks Father
Cash Register	$10/month (3 year contract)
Refrigerator and Other appliances	$0 (already included in rented space)
Gluten-Free Pizza Crust	$100 for 50 crusts	1 crust
Organic Sauce	$10.00 for 20 cups	1/2 cup
Organic Cheese Blend	$2.00 for 2 cups	1/2 cup
Assorted Spices	$18.75 for 5 lbs ($0.05/tsp)	1 tsp

Labor	Cost	Standard
Salary - Jack	$250/month $50/training day
Salary Chef	$2,000/month
Salary 2 Employees	$600 each /month
Marketing	$100/month $1.00/pizza
Accountant	$150/month

Overhead
Phone	$5/month
Utilities (Electric, Gas, and Water)	$225/month
Rent	$1050/month
Estimated Variable MOH	$2.00/pizza