Nolan owns 100% of the capital stock of both twill corp. and webb corp. twill purchases merchandise inventory from webb at 140% of webb’s cost. during year 2, merchandise that cost webb $40,000 was sold to twill. twill sold all of this merchandise to unrelated customers for $81,200 during year 2. in preparing combined financial statements for year 2, nolan’s bookkeeper disregarded the common ownership of twill and webb. by what amount was unadjusted revenue overstated in the combined income statement for year 2? a. $16,000b. $81,200c. $40,000d. $56,000

Advanced enterprises reports year-end information from 2018 as follows: sales (160,250 units) $968,000 cost of goods sold 641,000 gross margin 327,000 operating expenses 263,000 operating income $64,000 advanced is developing the 2019 budget. in 2019 the company would like to increase selling prices by 14.5%, and as a result expects a decrease in sales volume of 9%. all other operating expenses are expected to remain constant. assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. should advanced increase the selling price in 2019?