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A company,r produces 1,000 packages of dog treats per month. The sales price is $6.00 per pack. Variable cost is $1.50 per unit, and xed
A company,r produces 1,000 packages of dog treats per month. The sales price is $6.00 per pack. Variable cost is $1.50 per unit, and xed costs are $1,?00 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 xed costs will increase by 10%. 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.) O A. $6.00 0 B. $2.00 0 c. $6.5? O 0. $3}
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