Consider the production cost information for Mama Italiano Sauce given below: Mama Italian Sauce Production Cost Budget April 2008 Production – Jars of sauce 20,000

Consider the production cost information for Mama Italiano Sauce given below: Mama Italian Sauce Production Cost Budget April 2008 Production – Jars of 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 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 55,250 jars of sauce? Round to two decimal places.

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