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

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Accounting

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Fruit Sushi Inc. produces 1000 packages of fruit sushi per month. The sales price is $5 per pack. Variable cost is $1.60 per unit, and fixed costs are $1800 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 $1.60 to $1.90 per unit, and fixed costs will increase by 10%. 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.) $6.88 $5.00 $3.10 $3.40

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