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 sauce. The 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 74,000 jars of sauce?