Incremental cost assocaited with producing

Reference no: EM13144055

Consider the production cost information for Santiago's Salsa in Problem 1-1. The company is currently producing and selling 325,000 jars of sals annually. The jars sell for $5.00 each. The company i considering lowering the price to $4.60. Suppose this action will increase sales to 375,000 jars.

A. What is the incremental cost assocaited with producing an extra 50,000 jars of salsa?

B. What is the incremental revenue associated with the price reduction of $.40 per jar?

C. Should Santiago's lower the price ofits Salsa?

Reference no: EM13144055

Questions Cloud

Tax-transfer policy affect aggregate demand at current price : Suppose the government decides to increase taxes by $30 billion in order to increase SocialSecurity benefits by the same amount. How will this combined tax-transfer policy affect aggregatedemand at current prices?

What total amount should the net assets acquired be record : All costs associated with consummating the combination totaled $65,000. Included in that amount were stock issue costs of $8,000, legal fees of $52,000, and secretarial costs of $3,000. At what total amount should the net assets acquired be record..

What is the balance of nance capital at rhe end of the year : Any remaining net income or net loss is shared equally. What is the balance of Nance's capital at rhe end of the year after net income has been distributed ?

Define protonation of the ethanol : the alcohol attacking the 2-phenylacetic acid with the subsequent loss of a proton. b. protonation of the ethanol by H2SO4. c. protonation of the carbonyl oxygen of the 2-phenylacetic acid. d. protonation of the hydroxyl group of the 2-phenylac..

Incremental cost assocaited with producing : What is the incremental cost assocaited with producing an extra 50,000 jars of salsa? What is the incremental revenue associated with the price reduction of $.40 per jar? Should Santiago's lower the price ofits Salsa?

What is the molarity of hno3 : 25.0 mL of 1.50M LiOH are neutralized by 15.0mL of nitric acid. what is the molarity of HNO3?

Calculate the pressure of no and no2 in the mixture : At 1000 K, a sample of pure NO2 gas decomposes. 2 NO2(g) ->2 NO(g) + O2(g) The equilibrium constant KP is 158. Analysis shows that the partial pressure of O2 is 0.44 atm at equilibrium. Calculate the pressure of NO and NO2 in the mixture.

Define the equilibrium of fischer esterification reactions : The equilibrium of Fischer esterification reactions in general is slightly towards product formation. The equilibrium can be made more favorable for product formation by all of the following except

Firms total overhead cost and the overhead rate : Alex also informs you that, under the current scheme, 70% of the firm's total overhead is allocated to his product. a. Computer the firm's total overhead cost and the overhead rate.

User Account

All Pages