A. $3.50 B. $5.00 C. $5.77 D. $3.10

A company produces 1 000 packages of chicken feed per month. The sales price is $5.00 per pack. Variable cost is $1.60 per unit, and fixed costs are Sl , 700 per month Management considering adding a vitamin supplement to improve the value of the product. The variable cost Will increase from Sl 50 to Sl.90 per unit, and fixed costs will Increase by 10%. The CEO wants to price the new product at a level that will bring operating Income up to $2,000 per month. What sales price should be charged7 (Round your answer to the nearest cent) $3.50 $5.00 $5.77 $3.10