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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