Question: Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $243 Unit variable cost $117 Total fixed costs $780,000 The
Flying Cloud Co. has the following operating data for its manufacturing operations:
| Unit selling price | $243 |
| Unit variable cost | $117 |
| Total fixed costs | $780,000 |
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 907 units
b.decreased by 907 units
c.increased by 725 units
d.increased by 1,088 units
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