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The production cost information for Oriole's Salsa is as follows: Oriole's Salsa Production Costs April 2020 21,000 Production Jars of Salsa Ingredient cost (variable) $14.700
The production cost information for Oriole's Salsa is as follows: Oriole's Salsa Production Costs April 2020 21,000 Production Jars of Salsa Ingredient cost (variable) $14.700 Labor cost (variable) 8,820 Rent (fixed) 4,600 Depreciation (fixed) 7,400 Other (fixed) 1,300 Total $36,820 The company is currently producing and selling 294,000 jars of salsa annually. The jars sell for $6.00 each. The company is considering lowering the price to $5.40. Suppose this action will increase sales to 336,000 jars. (a) What is the incremental cost associated with producing an extra 42,000 jars of salsa
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