FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Flying Cloud Co. has the following operating data for its manufacturing operations:

Unit selling price $218
Unit variable cost $118
Total fixed costs $831,000

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

Flying Cloud Co. has the following operating data for its manufacturing operations:
Unit selling price
$218
Unit variable cost
$118
Total fixed costs
$831,000
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
Oa. increased by 1,191 units
Ob. increased by 1,489 units
Oc. decreased by 1,489 units
Od. increased by 1,786 units
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Transcribed Image Text:Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $218 Unit variable cost $118 Total fixed costs $831,000 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 Oa. increased by 1,191 units Ob. increased by 1,489 units Oc. decreased by 1,489 units Od. increased by 1,786 units
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