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

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.