A company produces 1,000 packages of chicken feed per month. The sales price is S6.00...
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A company produces 1,000 packages of chicken feed per month. The sales price is S6.00 per pack. Variable cost is $1.60 per unit, and fixed costs are $1,800 per month. Management is considering adding a vitamin supplement to improve the value of the product. The variable cost will increase from $1.60 to $1.80 per unit, and fixed costs will increase by 20%. The CEO wants to price the new product at a level that will bring operating income up to $4,000 per month. What sales price should be charged? (Round your answer to the nearest cent.) OA. $7.96 OB. $4.20 O c. $4.40 O D. $6.00
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