Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $214 $111 Unit variable cost Total fixed costs $850,000 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 O increased by 1,093 units Ob increased by 1.640 units Oc decreased by 1.367 units Od increased by 1,367 units

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Flying Cloud Co. has the following operating data for its manufacturing operations:
Unit selling price
$214
$111
Unit variable cost
Total fixed costs
$850,000
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
O increased by 1,093 units
Ob increased by 1.640 units
Oc decreased by 1.367 units
Od increased by 1,367 units
Transcribed Image Text:Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $214 $111 Unit variable cost Total fixed costs $850,000 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 O increased by 1,093 units Ob increased by 1.640 units Oc decreased by 1.367 units Od increased by 1,367 units
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