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How do I solve this from a monthly standpoint? 0 AutoSave G H Chapter 1 Excel problem assignment - Excel P search File Home insert
How do I solve this from a "monthly" standpoint?
0 AutoSave G H Chapter 1 Excel problem assignment - Excel P search File Home insert Draw Page Layout Formulas Data Review View Help 2 A a Define Name Use in Formula Insert AutoSum Recently Financial Logical Text Date & Lookup & Math & More Name Function Used Time Reference Trig functions Manager Create from Selection Function Library Defined Names K30 fo fx Trate Precedents i Show Formulas Palace Dependents Error Chechoing FRemove Arrows Evaluate Formule Formula Auditing 4 D E F G H 2. Consider the monthly production cost information for Santiago's Salsa given below. 3 Santiago's Salsa 5 Production Costs 6 April 2020 7 Production - Jars of salsa 25,000 8 Ingredient cost (variable) $20,000 9 Labor cost (variable) $12,000 10 Rent (fixed) $5,000 Depreciation (fixed) $6,000 12 Other (fixed) $1,000 13 Total $44,000 14 15 The company is currently producing and selling 325,000 jars of salsa annually. The salsa sells 16 for $ 5.00 each. The company is considering lowering the price to $ 4.60 Suppose 17 the action will increase sales to 375,000 jars of salsa 18 19 Required 20 a. What is the incremental cost associated with producing an extra 50,000 jars of salsa? 11 p1-2 EE Type here to search O sert ction AUTOSUM Recent Used Time Reference Trig Functions Function Library Manager Create from Selection Defined Names Remove Arrows Evalua Formula Auditing 0 A B D E F G H 1 J 4 15 The company is currently producing and selling 325,000 jars of salsa annually. The salsa sells 16 for $ 5.00 each. The company is considering lowering the price to $ 4.60 Suppose 17 the action will increase sales to 375,000 jars of salsa. 18 19 Required 20 a. What is the incremental cost associated with producing an extra 50,000 jars of salsa? 21 22 Monthly Variable costs per jar: 23 Ingredient cost 24 Labor cost 25 Total monthly variable cost at current production 26 Monthly Number of jars of salsa 27 Monthly Variable cost per jar at current production 28 Incremental number of jars 29 Incremental cost associated with price change 30 31 b. What is the incremental annual revenue associated with the price reduct $ 0.40 per jar? 32
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