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Question - Flying Cloud Co. has the following operating data for its manufacturing operations:
Unit selling price $209
Unit variable cost $107
Total fixed costs $769,000
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, what the next break-even point for Flying Cloud Co. will be?
a. increased by 976 units
b. increased by 1,220 units
c. increased by 1,465 units
d. decreased by 1,220 units
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