What is the incremental cost, Cost Accounting

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What is the incremental cost

Response to the following problem:

Santiago's Salsa Production Costs for 25,000 Jars

Ingredient Cost (variable) $20,000

Labor Cost (variable) $12,000

Consider the production cost information above. The company is currently producing and selling 325,000 jars of salsa annually. The jars sell for $5.00. The company is considering lowering the price to $4.60. Suppose this action will increase sales to 375,000 jars.

What is the incremental cost associated with producing an extra 50000 jars of salsa?

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Cost Accounting: What is the incremental cost

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Cost Accounting: What is the incremental cost

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