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Part 1
​Kroger, the​ country's leading​ grocery-only chain, added a line of private label organic and natural foods call Simple Truth to its stores. If​ you've priced organic​ foods, you know they are more expensive. For​ example, a dozen conventionally farmed​ Grade-A eggs at Kroger costs consumers ​$1.50​, whereas Simple Truth eggs are priced at ​$3.20 per dozen. One study found​ that, overall, the average price of organic foods is 85 percent more than conventional foods.​ However, if prices get too​ high, consumers will not purchase the organic options. One element of sustainability is organic​ farming, which costs much more than conventional​ farming, and those higher costs are passed on to consumers. Suppose that a conventional egg​ farmer's average fixed costs per year for conventionally farmed eggs are​ $1 million per​ year, but an organic egg​ farmer's fixed costs are three times that amount. The organic​ farmer's variable costs of​ $1.80 per dozen are twice as much as a conventional​ farmer's variable costs. Most large egg farmers sell eggs directly to retailers. Using​ Kroger's prices, what is the​ farmer's price per dozen to the retailer for conventional and organic eggs if​ Kroger's margin is 25 percent based on its retail​ price?
Part 2
The price the farmer sells a dozen of conventional eggs is ​$
  
enter your response here. ​(Round to the nearest​ cent.)