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What the next break-even point for Flying Cloud Co

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Question - Flying Cloud Co. has the following operating data for its manufacturing operations:

Unit selling price $209

Unit variable cost $107

Total fixed costs $769,000

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, what the next break-even point for Flying Cloud Co. will be?

a. increased by 976 units

b. increased by 1,220 units

c. increased by 1,465 units

d. decreased by 1,220 units

Reference no: EM133057925

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