Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $ 350
Unit variable cost $ 100
Total fixed costs $980,000
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 5%. If sales prices are held constant, the next break-even point for Flying Cloud Co. will be:
a) increased by 368 units
b) decreased by 368 units
c) increased by 132 units
d) decreased by 264 units

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