Sanchez Sweets is in the process of preparing a production cost budget for May. Actual costs in April for production of 7,000 batches of cookies were Ingredients cost Rent $ 7,200 1,100 Labor cost Depreciation Other fixed costs Total 3,300 900 700 $13.200 Ingredients cost and Labor cost are considered variable. The company is cumently producing and selling 85,000 batches of cookies annually with each batch sold for $8.00. The company is considering lowering the price to $7.50 per batch for which management estimates this will increase sales to 90,000 batches. Ingredients and labor are the only variable costs What is the incremental profit (loss) associated with the price reduction? $12.500 O 12.500) $7.500 OS(7.500) $7,000 Sanchez Sweets is in the process of preparing a production cost budget for May. Actual costs in April for production of 7,000 batches of cookies were: Ingredients cost Rent Labor cost Depreciation Other fixed costs Total $ 7,200 1,100 3,300 900 700 $13.200 Ingredients cost and Labor cost are considered variable. The company is currently producing and selling 85.000 batches of cookies annually with each batch sold for $8.00. The company is considering lowering the price to $7.50 per batch for which management estimates this will increase sales to 90,000 batches. Ingredients and labor are the only variable costs What is the incremental cost associated with producing an extra 5.000 batches of cookies? O$35,000 $20,000 $15.000 $12.000 $7.500