Question
Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $236 Unit variable cost $117 Total fixed costs $785,000 The
Flying Cloud Co. has the following operating data for its manufacturing operations:
| Unit selling price | $236 |
| Unit variable cost | $117 |
| Total fixed costs | $785,000 |
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 810 units
b.increased by 1,012 units
c.decreased by 1,012 units
d.increased by 1,214 units
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Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
4th Edition
978-0133251241, 9780133427516, 133251241, 013342751X, 978-0133255584
