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

A company produces 1,000 packages of chicken feed per month.The sales price is $4 per pack.Variable cost is $1.60 per unit,and fixed costs are $1,700 per month.Management is considering adding a vitamin supplement to improve the value of the product.The variable cost will increase from $1.60 to $1.70 per unit,and fixed costs will increase by 20%.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. )

A) $3.74
B) $4.44
C) $0.70
D) $4.00