Gushers Company produces 1000 packages of fruit snacks per month. The sales price is $4...
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Gushers Company produces 1000 packages of fruit snacks per month. The sales price is $4 per pack. Variable cost is $1.50 per unit, and fixed costs are $1800 per month. Management is considering adding a vitamin supplement to improve the value of the product. The variable cost will increase from $1.50 to $1.80 per unit, and fixed costs will increase by 20%. At what sales price for the new product will the two alternatives (sell as is or process further) produce the same operating income? (Round your answer to the nearest cent.) $4.00 $3.96 $4.66 $0.70
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