A Company Produces 1,000 Packs of Chicken Feed Per Month

A company produces 1,000 packs of chicken feed per month.The sales price is $4 per pack.Variable cost is $1.50 per unit,and fixed costs are $1,800 per month.Management is considering adding a vitamin supplement to improve the value of the product.The variable cost will go up from $1.50 to $1.90 per unit,and fixed costs will go up by 20%.At what 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.)

A) $5
B) $4.76
C) $3.99
D) $4.40