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 sellingjars 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 66,500 jars of sauce? I keep missing a step and just want guidance not the answer please.

(16000+9000)/20000=1.25 per jar

66500+20000=86500 jars

1.25*86500=108,125 total value

this is where I need guidance

9000+4000+6000+1000 /36000 im missing a set to get my total budget