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The production cost information for Blossom's Salsa is as follows: Blossom's Salsa Production Costs April 2020 Production 23,000 Jars of Salsa Ingredient cost (variable) $13,800

The production cost information for Blossom's Salsa is as follows:

Blossom's Salsa Production Costs April 2020
Production 23,000 Jars of Salsa
Ingredient cost (variable) $13,800
Labor cost (variable) 9,660
Rent (fixed) 4,300
Depreciation (fixed) 6,000
Other (fixed) 1,400
Total $35,160

The company is currently producing and selling 345,000 jars of salsa annually. The jars sell for $7.00 each. The company is considering lowering the price to $6.30. Suppose this action will increase sales to 391,000 jars.

(a)

What is the incremental cost associated with producing an extra 46,000 jars of salsa?

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