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

ID: 2360173 • Letter: F

Question

Flying Cloud Co. has the following operating data for its manufacturing operations: Unit Selling price $250 Unit Variable Cost 100 Total fixed costs 840,000 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 poverty 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 640 units b. increased by 400 units c. decreased by 640 units d. increased by 800 units Please show work

Explanation / Answer

a. increased by 640 units