Question: Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $210 Unit variable cost $115 Total fixed costs $783,000 The

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

Unit selling price $210
Unit variable cost $115
Total fixed costs $783,000

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 1,208 units

b. decreased by 1,510 units

c. increased by 1,812 units

d. increased by 1,510 units

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