Question: PROBLEM 1-2. Incremental Analysis Consider the production cost information for Marie's Pie Company in problem 1. The company is currently producing and selling 200,000 pies

PROBLEM 1-2. Incremental Analysis Consider the production cost information for Marie's Pie Company in problem 1. The company is currently producing and selling 200,000 pies annually. The pies sell for $4.00 each. The company is considering lowering the price to $3.70. Suppose this action will increase sales to 250,000 pies.

Required

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

b. What is the incremental revenue associated with the price reduction of $0.30 per pie?

c. Should Marie's lower the price of its pies?

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