Flying Cloud Co. has the following operating data for its manufacturing operations:Unit selling price$211Unit variable cost$115Total fixed costs$755,000The 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 pricesare held constant, the next break-even point for Flying Cloud Co. will beOa. increased by 1,142 unitsOb. decreased by 1,428 unitsOc. increased by 1,428 unitsOd. increased by 1,713 units

Break even Point The break-even point is the point at which total cost and total revenue are equal,…

The company has decided to increase the wages of hourly workers which will increase the unit variable cos are held constant, the next break-even point for Flying Cloud Co. will be Oa. increased by 1.142 units Ob. decreased by 1428 units Oc. increased by 1.428 units Od. increased by 1.713 units

The company has decided to increase the wages of hourly workers which will increase the unit variable cos are held constant, the next break-even point for Flying Cloud Co. will be Oa. increased by 1.142 units Ob. decreased by 1428 units Oc. increased by 1.428 units Od. increased by 1.713 units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Flying Cloud Co. has the following operating data for its manufacturing operations:
Unit selling price
$211
Unit variable cost
$115
Total fixed costs
$755,000
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
Oa. increased by 1,142 units
Ob. decreased by 1,428 units
Oc. increased by 1,428 units
Od. increased by 1,713 units

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