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27,000 Production Jars of Salsa Ingredient cost (variable) $21,600 Labor cost (variable) 12,420 Rent (fixed) 5,000 Depreciation (fixed) 6,500 Other (fixed) 2,000 Total $47,520 The

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27,000 Production Jars of Salsa Ingredient cost (variable) $21,600 Labor cost (variable) 12,420 Rent (fixed) 5,000 Depreciation (fixed) 6,500 Other (fixed) 2,000 Total $47,520 The company is currently producing and selling 405,000 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 486,000 jars. (a) What is the incremental cost associated with producing an extra 81,000 jars of salsa? Incremental Cost $

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