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At what sales price for the new product produce same income

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Question - A company produces 1,000 packages of chicken feed per month. The sales price is $6 per pack. Variable cost is $1.50 per unit, and fixed costs are $1,700 per month. Management is considering adding a vitamin supplement to improve the value of the product. The variable cost will increase from $1.50 to $1.90 per unit, and fixed costs will increase by 10%. At what sales price for the new product will the two alternatives (sell as is or process further) produce the same operating income?

Reference no: EM133081444

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