Question
Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $210 Unit variable cost $109 Total fixed costs $785,000 The
Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $210 Unit variable cost $109 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 increased by 1,547 units decreased by 1,289 units increased by 1,031 units increased by 1,289 units
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