Question: 17) Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $200 Unit variable cost 120 Total fixed costs 772,000

17) Flying Cloud Co. has the following operating data for its manufacturing operations:

Unit selling price $200

Unit variable cost 120

Total fixed costs 772,000

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 (rounded to a whole number)

a. increased by 1,726 units

b. decreased by 2,157 units

c. increased by 2,157 units

d. increased by 2,588 units

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