Solution-What is incremental cost associated with producing

What is incremental cost associated with producing extra jar

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Reference no: EM133111372

Question - The production cost information for Blossom's Salsa is as follows:

Blossom's Salsa Production Costs April 2020
Production	23,000 Jars of Salsa
Ingredient cost (variable)	$13,800
Labor cost (variable)	9,660
Rent (fixed)	4,300
Depreciation (fixed)	6,000
Other (fixed)	1,400
Total	$35,160

The company is currently producing and selling 345,000 jars of salsa annually. The jars sell for $7.00 each. The company is considering lowering the price to $6.30. Suppose this action will increase sales to 391,000 jars.

Required - What is the incremental cost associated with producing an extra 46,000 jars of salsa?

Reference no: EM133111372

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What is incremental cost associated with producing extra jar : The company is currently producing and selling 345,000 jars of salsa annually. What is the incremental cost associated with producing an extra 46,000 jars

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What is incremental cost associated with producing extra jar

Reference no: EM133111372

Reference no: EM133111372

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