Revenue associated with price reduction of sauce

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Reference no: EM131326941

Mama Italiano Sauce Production of jars 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 250,000 jars of sauce annually. The jars of sauce sell for $4 per jar. The company is considering lowering the price to $3.60. Per jar. Suppose this action action will increase sales to 316,500 jars of Saudi . What is the incremental revenue associated with the price reduction of sauce?

Reference no: EM131326941

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