Question: a pro forma income statement for a cost reduction project: a) will generally reflect no incremental sales b) will reflect a reduction in the sales

a pro forma income statement for a cost reduction project:

a) will generally reflect no incremental sales

b) will reflect a reduction in the sales revenue

c) will exclude any effects of depreciation

d) cannot be prepared due to the lack of any project related sales

e) will always reflect a negative project operating cash flow

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