Question
1.Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $209 Unit variable cost $101 Total fixed costs $844,000 The
1.Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $209 Unit variable cost $101 Total fixed costs $844,000 The company has decided to increase the wages of hourly workers which will increase the unit variable cost by 10%. Increases in the salaries of factory supervisors and property taxes for the factory will increase fixed costs by 4%. If sales prices are held constant, the next break-even point for Flying Cloud Co
a.decreased by 1,151 units
b.increased by 1,381 units
c.increased by 1,151 units
d.increased by 921 units
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