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Fruit Sushi Inc. produces 1000 packages of fruit sushi per month. The sales price is $4 per pack. Variable cost is $1.60 per unit, and
Fruit Sushi Inc. produces 1000 packages of fruit sushi per month. The sales price is $4 per pack. Variable cost is $1.60 per unit, and fixed costs are $1700 per month. Management is considering adding a chocolate coating to improve the value of the product by making it a dessert item. The variable cost will increase from $1.60 to $1.70 per unit, and fixed costs will increase by 20%. The CEO wants to price the new product at a level that will bring operating income up to $2000 per month. What sales price should be charged? (Round your answer to the nearest cent.) $5.74 $2.40 O $2.30 O $4.00
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