What if a firm has used LIFO for several years during which costs have trended higher. If this firm achieves a substantial reduction in inventory quantities for 2007 by selling more merchandise that it purchases, the effect on 2007 net income of the inventory reduction, compared to having no change in inventory quantity from the beginning to the end of 2007 is?

A. net inocme for 2007 will be greater if the inventory quantity declines
b. net income for 2007 will be less if the inventory quantity declines
c. net income for 2007 will not be affected because of the inventory quantity decline
d. Can't tell from the information given


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