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What is incremental revenue associated with price reduction

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Question - The Company is currently producing and selling 264,000 jars of salsa annually. The jars sell for $8.00 each. The company is considering lowering the price to $7.50. Suppose this action will increase sales to 308,000 jars. What is the incremental revenue associated with the price reduction of $0.50 per jar?

Reference no: EM133119173

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