Xu Corp.started business at the beginning of 2015.Xu selected the FIFO method for its inventory.In order to maximize its profits for 2015 under this method, prices must be

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Under the FIFO method, the oldest inventory items are sold first. Therefore, if prices are increasing throughout the year, the cost of goods sold will be lower, leading to higher profits. On the other hand, if prices are decreasing or stable, the cost of goods sold will be higher, leading to lower profits.

Xu CorpStarted Business at the Beginning of 2015