Using Cost-Volume-Profit Analysis, We Can Conclude That a 20 Per

question 53

Multiple Choice

Using cost-volume-profit analysis, we can conclude that a 20 per cent reduction in variable costs will

• A)reduce the break-even sales volume by 20 per cent.
• B)reduce total costs by 20 per cent.
• C)reduce the slope of the total cost line by 20 per cent.
• D)not affect the break-even sales volume if there is an offsetting 20 per cent increase in fixed costs.

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