Incremental cost

Sanchez sweets is in the process of preparing a production cost budget for May.  Actual costs in April for production of 7000 batches of cookies were

ingriedents 7200; Rent 1100, Labor cost 3300, depreceiation 900, other fixed cost 700 total 13200.  The company is currently producing and selling 80000 batches of cookies annually with each bath sold fro $8.00.  The company is considering lowering the price to $7.50 per batch for which managment estimates this will increase sales to 90000 batches