A B D E F G H Problem 1-2 Incremental Analysis - SEE TEXTBOOK PAGE 1-28 Consider the monthly production cost information for Santiago's Salsa given below. Santiago's Salsa Production Costs April 2020 Production - Jars of salsa Ingredient cost (variable) Labor cost (variable) Rent (fixed) Depreciation (fixed) Other (fixed) Total 25,000 $20,000 $12,000 $5,000 $6,000 $1,000 $44,000 1 2 B 1 P1-2. o a Seardi C AutoSave O Chapter 1 Excel problem assignment (1) File Home Insert Draw Page Layout Formulas Data Review fa 12 A Insert AutoSum Recently Financial Logical Test Date & Lookup & Math & More Function Used Time Reference Trig Functions Function Library B38 6 View Help Soda PDF 11 Creator Precedenti i Show Formula Use in Formula grec Dependents to Checking My Cote from Selection tomowe ArrowsIvalonte Formu Deaed Names Formula Auditing A B D E F G H J 15 The company is currently producing and selling 325,000 jars of salsa annually. The salsa sells 16 for $5.00 each. The company is considering lowering the price to $ 4.60 Suppose 17 the action will increase sales to 375,000 jars of salsa. 18 19 Required 20 a. What is the incremental cost associated with producing an extra 50,000 jars of salsa? 22 Monthly Variable costs per jar: 23 Ingredient cost 24 Labor cost 25 Total monthly variable cost at current production 26 Monthly Number of jars of salsa 27 Monthly Variable cost per jar at current production 28 Incremental number of jars 21 P1-2 :: a e o - AutoSave CE Clupta 1 Excel problem attignien (1) Crystalright the Home O D Page Layout Formulas Data view View Help Soda PDF 1 Creator Share Comments A 2 A Autos y Francia logical Text Datotek na thed Ted Function uwinfo With 38 E G K L M A B D F H 25 Total monthly variable cost at current production 26 Monthly Number of jars of salsa 27 Monthly Variable cost per jar at current production 28 Incremental number of jars 29 Incremental cost associated with price change 30 31 b. What is the incremental annual revenue associated with the price reduc $0.40 per jar? 33 Original annual revenue 34 Annual Revenue with price change 35 Incremental annual revenue associated with price change 36 37 c. Should Santiago's lower the price of its salsa? Explain why. 38 O 32 TE