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Gushers Company produces 1000 packages of fruit snacks per month. The sales...

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Accounting

Gushers Company produces 1000 packages of fruit snacks per month. The sales price is $6
per pack. Variable cost is $1.60 per unit, and fixed costs are $1700 per month. Management
is considering adding a vitamin supplement to improve the value of the product. The variable
cost will increase from $1.60 to $1.70 per unit, and fixed costs will increase by 20%. At what
sales price for the new product will the two alternatives (sell as is or process further)
produce the same operating income? (Round your answer to the nearest cent.)
$3.74
$2.70
$6.00
$6.44
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