Question: Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $ 350 Unit variable cost $ 100 Total fixed costs

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

Unit selling price	$ 350
Unit variable cost	$ 100
Total fixed costs	$980,000

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 5%. If sales prices are held constant, the next break-even point for Flying Cloud Co. will be:

Question 19 options:

	increased by 368 units
	decreased by 368 units
	increased by 132 units
	decreased by 264 units

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