Question: Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $222 Unit variable cost $111 Total fixed costs $823,000 The

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

Unit selling price	$222
Unit variable cost	$111
Total fixed costs	$823,000

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 923 units

b.increased by 1,384 units

c.increased by 1,153 units

d.decreased by 1,153 units

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