Incremental cost associated with producing

Assignment Help Accounting Basics

Reference no: EM13259215

Consider the production cost information for Santiago's Salsa in problem 1. The company is currently producing and selling 250,00 jars annually. The jars sell for $4.00 each. The company is considering lowering the price to $3.70. Suppose this action will increase sales to 300,000 jars.

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

B. What is the incremental cost associated with the price reduction of $0.30 per jar?

C. Should Santiago's lower the price of it's salsa?

Reference no: EM13259215

Questions Cloud

Determine the generated voltage and the kw rating : A four pole DC machine has a wave winding of 300 turns. The flux per pole is .025 webers. The DC machine rotates at 1000 RPM. Determine the generated voltage and the kW rating if the current through the turn is 25 amps.

Explain what is the internal energy change of a gas gives : what is the internal energy change of a gas gives off 312 of heat while being compress 862mL by a pressure of 1.64 bar. what are internal energy change in surrounding and universe for the process

What cash price should duncan accept on a tv set listed : What cash price should Duncan accept on a TV set listed at $1195 if Duncan could use the cash to pay off debt now, on which it pays a 13.5% simple rate of interest ?

How to connect zig-zag transformer in delta configuration : Is connections in transformer are mains connected with the transformer or winding connections If it is mains connections then how can we connect zig-zag transformer in delta configuration

Incremental cost associated with producing : What is the incremental cost associated with producing an extra 50,000 jars of salsa. What is the incremental cost associated with the price reduction of $0.30 per jar?

The chances of becoming avictim of crime : Does a person bear some of the responsibility for his orher victimization if the person has a lifestyle (e.g., membership in gang,history of drug abuse, etc.) that contributes to the chances of becoming avictim of crime?

What interest was credited to roger account : What interest was credited to Roger's account on June 30 ? The brokerage firm includes interest for both January 1 and June 30 in the June 30 payment. Assume that Febuary has 28 days.

Proper provision for doubtful accounts : Allowance for Doubtful Accounts has an unadjusted balance of $1,100 at the end of the year, and an analysis of customer's accounts indicates doubtful accounts of $12,900. Which of the following records the proper provision for doubtful accounts?

Find the emf induced in the inner solenoid : One solenoid is centered inside another. The outer one has a length of 55.0cm and contains 6800 coils, Find the emf induced in the inner solenoid

User Account

All Pages