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What is the incremental cost associated with producing an

Question - Incremental Analysis

Consider the production cost information for Santiago's Salsa. The company is currently producing and selling 325,000 jars of salsa annually. The jars sell for $5.00 each. 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 50,000 jars of salsa?

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