Question
Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $232 Unit variable cost $104 Total fixed costs $838,000 The
Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $232 Unit variable cost $104 Total fixed costs $838,000 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. will be a.increased by 864 units b.increased by 1,037 units c.increased by 691 units d.decreased by 864 units
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