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Flying Cloud Co

Question 128

Multiple Choice

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

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