Question: Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $223 Unit variable cost $113 Total fixed costs $751,000 The

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

Unit selling price $223
Unit variable cost $113
Total fixed costs $751,000

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.decreased by 1,086 units

b.increased by 1,303 units

c.increased by 1,086 units

d.increased by 869 units

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