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QUESTION 28 Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price Unit varia
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c.increased by 640 units.

existing break even point:

=> fixed costs/ (contribution per unit)

=>$840,000 / ($150)

=>5600 unts.

new break even point:

new variable cost = $100 +10%

=>$110.

fixed cost =$840,000+4%

=>$873,600.

new break even point = $873,600 / (250-110)

=>6,240 units.

so break even points increase by 6240-5600 =>640 units.

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