Foggy CoHas the Following Operating Data for Its Manufacturing Operations

question 113

Multiple Choice

Foggy Co.has the following operating data for its manufacturing operations: $$\begin{array} { l r } \text { Unit selling price } & \$ 250 \\\text { Unit variable cost } & \$ 100 \\\text { Total fixed costs } & \$ 840,000\end{array}$$ ? 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 break-even point for Foggy Co.will:

• A) increase by 400 units.
• B) increase by 640 units.
• C) decrease by 640 units.
• D) increase by 800 units.

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