Question
Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $ 350 Unit variable cost $ 100 Total fixed costs
Flying Cloud Co. has the following operating data for its manufacturing operations:
Unit selling price | $ 350 |
Unit variable cost | $ 100 |
Total fixed costs | $980,000 |
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 5%. If sales prices are held constant, the next break-even point for Flying Cloud Co. will be:
Question 19 options:
increased by 368 units | |
decreased by 368 units | |
increased by 132 units | |
decreased by 264 units |
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