?Kroger, the? country's leading? grocery-only chain, added aline of private label organic and natural foods call Simple Truthto its stores. If? you've priced organic? foods, you know they aremore expensive. For? example, a dozen conventionally farmed?Grade-A eggs at Kroger costs consumers$1.81?,whereas Simple Trutheggs are priced at $4.1 per dozen. One study found? that, overall,the average price of organic foods is 85 percent more than that ofconventional foods.? However, if prices get too? high, consumerswill not purchase the organic options. One element ofsustainability is organic? farming, which costs much more thanconventional? farming, and those higher costs are passed on toconsumers. Suppose that a conventional egg? farmer's average fixedcosts per year for? conventionally-farmed eggs are? $1 million per?year, but an organic egg? farmer's fixed costs are five times thatamount. Further assume that the organic? farmer's variable costsof?$2.22.2per dozen are twice as much as conventional? farmer'svariable costs.

Most large egg farmers sell eggs directly to retailers. Using?Kroger's prices, what is the? farmer's price per dozen to theretailer for conventional and organic eggs if? Kroger's marginis

25 percent based on its retail? price?

The price the farmer sells a dozen of conventional eggs is?$_______________