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Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $214 $111 Unit variable cost Total fixed costs $850,000 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 O increased by 1,093 units Ob increased by 1.640 units Oc decreased by 1.367 units Od increased by 1,367 units

Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $214 $111 Unit variable cost Total fixed costs $850,000 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 O increased by 1,093 units Ob increased by 1.640 units Oc decreased by 1.367 units Od increased by 1,367 units

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $214 $111 Unit variable cost Total fixed costs $850,000 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 O increased by 1,093 units Ob increased by 1.640 units Oc decreased by 1.367 units Od increased by 1,367 units
Transcribed Image Text:Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $214 $111 Unit variable cost Total fixed costs $850,000 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 O increased by 1,093 units Ob increased by 1.640 units Oc decreased by 1.367 units Od increased by 1,367 units
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