Calculator Flying Cloud Co. has the following operating data for its manufacturing operations: ...
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Flying Cloud Co. has the following operating data for its manufacturing operations:
Unit selling price
$226
Unit variable cost
$105
Total fixed costs
$805,000
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 739 units
b.increased by 1,108 units
c.increased by 924 units
d.decreased by 924 units
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