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A company produces 1,000 packages of chicken feed per month. The sales price is $ 5.00 per pack. Variable cost is $ 1.50 per unit,
A company produces 1,000 packages of chicken feed per month. The sales price is $ 5.00 per pack. Variable cost is $ 1.50 per unit, and fixed costs are $1,700 per month. Management is considering adding a vitamin supplement to improve the value of the product. The variable cost will increase from$ 1.50 to $1.90 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 $4,000 per month. What sales price should be charged? (Round your answer to the nearest cent.)
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