Better Buy Has Six CD Players in Inventory on December

Multiple Choice

Better Buy has six CD players in inventory on December 31.The players were purchased in November for $170.Price lists from Better Buy's supplier indicate that the same CD player would now cost the company $168.The current sales price for each of the CD players is $320.The adjustment would have what effect on Gross profit?

A) Gross Profit would increase by $2.
B) Gross Profit would not be affected.
C) Gross Profit would decrease by $12.
D) Gross Profit would increase by $12.