Mama italian sauce production cost budget april 2008


Consider the production cost information for Mama Italiano Sauce given below: Mama Italian Sauce Production Cost Budget April 2008 Production - Jars of sauce 20,000 Ingredient cost (variable) $16,000 Labor cost (variable) 9,000 Rent (fixed) 4,000 Depreciation (fixed) 6,000 Other (fixed) 1,000 Total $36,000 The company is currently producing and selling jars of sauce The jars of sauce sell for $4 per jar. The company is considering lowering the price to $3.70 per jar. Suppose this action will increase sales. What is the incremental cost associated with producing an extra 68,000 jars of sauce?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Mama italian sauce production cost budget april 2008
Reference No:- TGS01220314

Expected delivery within 24 Hours