Sign in de os de salsa est mentar las Consider the production cost information for the tomato sauce that is offered below: Tomato Sauce Production costs, June 2017 Production of pots of sauce 25,000 Ingredient cost (variable) $20,000 Labor cost (variable) 12,000 Rent (fixed) 5,000 Depreciation (fixed) 6,000 Others (fixed) 1,000 Total $44,000 The company currently produces and sells 325,000 jars of sauce a year. The jars sell for $5.00 each. The company is considering lower the price to $4.50. Suppose this action will increase sales to $365,000 jars. a) What is the incremental cost associated with producing an extra of 40,000 jars of sauce? b) What is the incremental revenue associated with the price reduction cin de un of $0.50 per jar? B