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Fruit Sushi Inc. produces 1000 packages of fruit sushi per month. The sales price is...

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Accounting

Fruit Sushi Inc. produces 1000 packages of fruit sushi per month. The sales price is $4 per
pack. Variable cost is $1.50 per unit, and fixed costs are $1700 per month. Management is
considering adding a chocolate coating to improve the value of the product by making it a
dessert item. 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 $3000 per month. What sales price should be charged? (Round your
answer to the nearest cent.)
$2.10
$6.94
$4.00
$2.50
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