Question: Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price Unit variable cost Total fixed costs $220 $113 $811,000

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

Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price Unit variable cost Total fixed costs $220 $113 $811,000 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 Oa. increased by 987 units Ob. increased by 1,234 units c. increased by 1,481 units Od. decreased by 1,234 units

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