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 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
A
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