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%.The CEO wants to price the new product at a level which will bring operating income up to $1,000 per month.What price is to be charged?

A) $5.00
B) $5.06
C) $4.99
D) $4.76