Acompany produces 1 comma 0001,000 packages of dog treats per month. the sales price is $ 6.00$6.00 per pack. variable cost is $ 1.50$1.50 per unit, and fixed costs are $ 1 comma 800$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$1.50 to $ 1.70$1.70 per unit, and fixed costs will increase by 2020%. 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.)

$ 6.56

Explanation:

Sales price per unit = $6

Sales price for 1000 units:

= $6 × 1000 units

= $6,000

Contribution = Sales - Variable Cost

                     = $6,000 - ($1.50 per unit × 1,000 units)

                     = $6,000 - $1,500

                     = $4,500

Operating Cost = Contribution - Fixed cost

                           = $4,500 - $1,800

                           = $2,700

For further processing:

Variable Cost = $ 1.70 per unit

Variable cost for 1000 units:

= 1000 × 1.70

= $1,700

Fixed Cost = $1,800 + 20% × $1,800

                  = $1,800 + $360

                  = $2,160

Let the sale price per unit be "x"

Operating Income = Sales - Variable Cost - Fixed Cost

2,700 = (1000 units × x) - $1,700 - $2,160

2,700 = 1000x - $3,860

1000x = 6,560

x = $6.56

(75years ,i believe is the correct answer.good luck