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Consider the production cost information for Mama Italiano Sauce given below: Mama Italian Sauce Production Cost Budget April 2008 Production - Jars of sauce -

Consider the production cost information for Mama Italiano Sauce given below:

Mama Italian 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 jars of sauceThe jars of sauce sell for $4 per jar.The company is considering lowering the price to $3.70 per jar.Suppose this action will increase sales.What is the incremental costs associated with producing an extra 68,000 jars of sauce?

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