Southeast Wood Products,Inc

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%