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 $5 per pack.Variable cost is $1.50 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 $1.50 to $1.80 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 $3,000 per month.What sales price should be charged? (Round your answer to the nearest cent. )

A) $3.50
B) $6.84
C) $5.00
D) $3.20