Flying Cloud Co

question 72

Multiple Choice

Flying Cloud Co. has the following operating data for its manufacturing operations: 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:

Genetic Abnormalities

Variations or mutations in genes that can lead to diseases, disorders, or physical abnormalities.

Flynn Effect

The observed substantial and long-term increase in both fluid and crystallized intelligence test scores measured in many parts of the world over the 20th century.

IQ Scores

Standardized scores derived from intelligence tests that measure a person's cognitive abilities in relation to their age group.

Peter Principle

A principle suggesting that individuals in a hierarchy tend to be promoted until they reach a level of respective incompetence.