Question 5 (1 point) Mama Italiano Sauce is in the process of preparing a production cost budget for May. The actual costs in April were:Mama Italian SauceProduction Cost BudgetApril 2008Production – Jars of sauce20 000Ingredient cost (variable)$16 000Labor cost (variable)9 000Rent (fixed)4 000Depreciation (fixed)6 000Other (fixed)1 000Total$36 000Using this information prepare a budget for May stating the total amount for the May budget. Assume the budget will increase to 25 000 jars of sauce reflecting anticipated sales increase related to a new marketing campaignYour Answer:Question 5 options:AnswerSaveQuestion 6 (1 point) Consider the production cost information for Mama Italiano Sauce given below:Mama Italian SauceProduction Cost BudgetApril 2008Production – Jars of sauce20 000Ingredient cost (variable)$16 000Labor cost (variable)9 000Rent (fixed)4 000Depreciation (fixed)6 000Other (fixed)1 000Total$36 000The 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 costs associated with producing an extra 66 500 jars of sauce?Your Answer:Question 6 options:AnswerSaveQuestion 7 (1 point) Consider the production cost information for Mama Italiano Sauce given below:Mama Italiano SauceProduction Cost BudgetApril 2008Production – Jars of sauce20 000Ingredient cost (variable)$16 000Labor cost (variable)9 000Rent (fixed)4 000Depreciation (fixed)6 000Other (fixed)1 000Total$36 000The 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 $3.75 per jar. Suppose this action will increase sales to 319 500 jars of sauce. What is the incremental revenue associated with the price reduction of sauce?Your Answer:Question 7 options:Answer
Mama Italiano Sauce is in the process of preparing a production cost
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