A Company Produces 1000 Packs of Chicken Feed Per Month

A company produces 1000 packs of chicken feed per month.Sales price is $6 per pack.Variable cost is $1.00 per unit,and fixed costs are $1600 per month.Management is considering adding a vitamin supplement to improve the value of the product.The variable cost will go up from $1.00 to $2.50 per unit,but there will be no change in fixed costs.The company will price the new product at $4.50 to compete with other producers.How will this affect operating profit?

A) Operating profit will go down by $1600 per month.
B) Operating profit will go down by $3000 per month.
C) Operating profit will go up by $3000 per month.
D) Operating profit will remain unchanged.