Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) A 10% increase in sales has a smaller impact on cash flow than a 10% reduction in cost of sales.
B) A 10% increase in sales has the same impact on cash flow than a 10% reduction in cost of sales.
C) A 10% increase in sales has a larger impact on cash flow than a 10% reduction in cost of sales.
D) A 10% increase in sales has a smaller impact on after-tax profits than a 10% reduction in cost of sales.
E) None of the above