Flying Cloud Co

question 46

Multiple Choice

Flying Cloud Co. has the following operating data for its manufacturing operations:Unit selling price$ 250Unit variable cost100Total fixed costs840,000​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

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Definitions:

Displacement

In psychoanalytic theory, the defense mechanism that redirects an impulse from a dangerous target to a safe one.

Superego

A component of Sigmund Freud's psychoanalytic theory, representing the moral conscience and ethical standards of the psyche.

Psychic Energy

A concept in psychoanalytic theory referring to the force behind human behaviors, thoughts, and feelings originating from innate instincts and drives.

Moral Judgments

Decisions or evaluations about the rightness or wrongness of actions, often based on a set of ethical principles or societal norms.