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 $ 1200 Rent 1,100 Labor cost 3,300 Depreciation 900 Other fixed costs 700 Total m The company is currently producing and selling 80,000 batches of cookies annually with each batch sold for $8.00. The company is considering lowering the price to $150 per batch for which management estimates this will increase sales to 00,000 hatches. Ingredients and labor are the only variable costs. a. What is the incremental cost associated with producing an extra 10,000 hatches oi cookies? is. What is the incremental revenue associated with the price reduction? c. Should Sanchez Sweets lower the price of its cookies