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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