Incremental cost
Question # 00811279
Posted By:
Updated on: 10/04/2021 11:59 PM Due on: 10/04/2021
Production 30,000 Jars of Salsa
Ingredient cost (variable)$ 27,000
Labor cost (variable)14,400
Rent (fixed)4,300
Depreciation (fixed)6,200
Other (fixed)1,900
Total$ 53,800
The company is currently producing and selling 420,000 jars of salsa annually. The jars sell for $ 6.00 each. The company is considering lowering the price to $ 5.50. Suppose this action will increase sales to 480,000 jars.
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What is the incremental cost associated with producing an extra 60,000jars of salsa?
Incremental Cost $ ?????
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Rating:
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