A leading beverage company sells its signature soft drink brand in vending machines for$0.73per 12 oz. can. A vending machine has monthly fixed costs of space rental, energy consumption, and capital depreciation of$150. Variable cost for a can of soda is$0.45.

The optimistic regional sales manager wondered what the selling price of the soda would need to be in order to achieve a 20% increase in the contribution per unit?