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Southeast Wood Products, Inc. reports sales of $20,000,000 and inventory of $4,000,000. Southeast's inventory possesses significant economies of scale. Therefore, if the firm's sales increase
Southeast Wood Products, Inc. reports sales of $20,000,000 and inventory of $4,000,000. Southeast's inventory possesses significant economies of scale. Therefore, if the firm's sales increase by 10%, Southeast's inventory will ________ and if Southeast's sales decrease by 10%, Southeast's inventory will ________.
A) increase by more than 10%; increase by more than 10%
B) decrease by more than 10%; decrease by more than 10%
C) increase by more than 10%; decrease by less than 10%
D) increase by less than 10%; decrease by less than 10%
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