Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $202 Unit variable cost $103 Total fixed costs $801,000 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 1,561 units b.increased by 1,301 units c.decreased by 1,301 units d.increased by 1,041 units

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter20: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 3CMA: Bolger and Co. manufactures large gaskets for the turbine industry. Bolgers per-unit sales price and...
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Flying Cloud Co. has the following operating data for its manufacturing operations:

Unit selling price $202
Unit variable cost $103
Total fixed costs $801,000

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 1,561 units
b.increased by 1,301 units
c.decreased by 1,301 units
d.increased by 1,041 units
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