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The production cost information forSheridan's Salsa is as follows: Sheridan's Salsa Production Costs April 2020 Production 28,000 Jars of Salsa Ingredient cost (variable)$22,400 Labor cost

The production cost information forSheridan's Salsa is as follows:

Sheridan's Salsa

Production Costs

April 2020

Production 28,000

Jars of Salsa

Ingredient cost (variable)$22,400

Labor cost (variable) 11,200

Rent (fixed) 5,100

Depreciation (fixed 7,600

Other (fixed) 1,600

Total $47,900

The company is currently producing and selling364,000jars of salsa annually. The jars sell for $8.00each. The company is considering lowering the price to $7.50. Suppose this action will increase sales to420,000jars.

(a)

What is the incremental cost associated with producing an extra56,000jars of salsa?

Incremental Cost $

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