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

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Accounting

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

    Unit selling price $226
    Unit variable cost $105
    Total fixed costs $805,000

    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 739 units

    b.increased by 1,108 units

    c.increased by 924 units

    d.decreased by 924 units

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