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What is the incremental revenue associated with the price

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Question - The company is currently producing and selling 325,000 jars of soup 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.

a. What is the incremental cost associated with producing an extra 50,000 jars of soup?

b. What is the incremental revenue associated with the price reduction of $0.40 per jar?

Reference no: EM131996424

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