Multiple Choice
Flying Cloud Co. has the following operating data for its manufacturing operations:Unit selling price$ 250Unit variable cost100Total fixed costs840,000The 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 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
Correct Answer:
Verified
Correct Answer:
Verified
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