Jones Cola sells bottled beverages. During the past year, 40,000 bottles were produced and sold at a price of $1.20 per bottle. Variable cost per unit was $0.45 and total fixed costs were $150,000. Jones Cola would like to raise the price per bottle to $1.50, but feels that this will reduce sales to 36,000 bottles per year. Perform the appropriate incremental analysis of this situation. Clearly label the incremental revenues, incremental costs, and incremental profits.

Incremental revenue		$enter incremental revenue in dollars
Incremental variable cost savings		enter incremental variable cost savings in dollars
Incremental profit / (loss)		$enter incremental profit / (loss) in dollars

Should Jones Cola raise its price?

Jones Cola select an option should notshould raise its selling price.