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Carla Vista's Salsa Production Costs April 2020 30,000 Production Jars of Salsa Ingredient cost (variable) $ 21,000 Labor cost (variable) 14,400 Rent (fixed) 4,300 Depreciation
Carla Vista's Salsa Production Costs April 2020 30,000 Production Jars of Salsa Ingredient cost (variable) $ 21,000 Labor cost (variable) 14,400 Rent (fixed) 4,300 Depreciation (fixed) 6,900 Other (fixed) 1,500 Total $ 48,100The company is currently producing and selling 330,000 jars of salsa annually. The jars sell for $ 8.00 each. The company is considering lowering the price to $ 7.40. Suppose this action will increase sales to 390,000 jars. (a) What is the incremental cost associated with producing an extra 60,000 jars of salsa? Incremental Cost $
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