The Skone Corporation reported at the end of the year a LIFO reserve of $25,000.The beginning LIFO reserve was $20,000.The cost of goods sold was $197,500 under LIFO.The cost of goods sold under FIFO should be

A) $192,500.
B) $197,500.
C) $202,500.
D) $222,500.

If the company pursues the investment opportunity and otherwise performs the same as last year, the combined margin for the entire company will be closest to:

A) 9.9%
B) 1.9%
C) 7.8%
D) 6.3%