Question: Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $234 Unit variable cost $120 Total fixed costs $759,000 The

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

Unit selling price	$234
Unit variable cost	$120
Total fixed costs	$759,000

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 1,297 units

b.decreased by 1,081 units

c.increased by 865 units

d.increased by 1,081 units

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