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 $1.50 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 increase from $1.50 to $1.90 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 $4,000 per month.What sales price should be charged? (Round your answer to the nearest cent.)

A) $2.50
B) $8.06
C) $4.00
D) $2.10