The production cost information for Crane's Salsa is as follows: Crane's Salsa Production Costs April 2020

Production 21,000 Jars of Salsa Ingredient cost (variable) $18,900 Labor cost (variable) 9,660 Rent (fixed) 4,300 Depreciation (fixed) 6,400 Other (fixed) 1,100 Total $40,360 The company is currently producing and selling 210,000 jars of salsa annually. The jars sell for $6.00 each. The company is considering lowering the price to $5.60. Suppose this action will increase sales to 252,000 jars.

What is the incremental cost associated with producing an extra 42,000 jars of salsa?

Incremental Cost $enter incremental cost in dollar _______________________________

What is the incremental revenue associated with the price reduction of $0.40 per jar? Incremental Revenue $enter incremental revenue in dollar____________________