Consider the production cost information for mama Italian sauce given below:

Mama italiano sauce

Production cost budget

April 2008

Production - jars of sauce 20,000

Ingredient cost (variable) $16,000

Labor cost (variable) 9,000

Rent. (Fixed) 4,000

Depreciation (fixed ) 6,000

Other (fixed) 1,000

Total. $36,000

The company is currently producing and selling 250,000 jars of sauce annually. The jars of sauce sell for $4 per jar. The company is considering lowering the price to $ 3.75 per jar. Suppose this action will increase sales to 304,500 jars of sauce. What is the incremental revenue associated with the price reduction of sauce ?