Using Cost-Volume-Profit Analysis,what Would Be the Result of a 20

question 93

Multiple Choice

Using cost-volume-profit analysis,what would be the result of a 20 percent reduction in variable costs?

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

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Definitions:

Expansion

The process of expressing something in an extended form, often used in mathematics to denote the development of an algebraic expression or series.

N Th Term

A term in a sequence or series that is specified by its position (n), often expressed as a formula in terms of n.

Expansion

The process of simplifying expressions by removing brackets in algebra.

Binomial Coefficient

A numerical factor that multiplies the successive terms in the expansion of a binomial raised to a power, often denoted as C(n, k) or \( \binom{n}{k} \).