Pen Corporation regularly sells inventory items to its subsidiary, Shu Corporation. If unrealized profits in Shus 2011 year-end inventory exceed the unrealized profits in its 2012 year-end inventory:

a Combined cost of sales will be greater than consolidated cost of sales in 2011

b Combined cost of sales will be less than consolidated cost of sales in 2011

c Combined gross profit will be greater than consolidated gross profit in 2011

d Combined sales will be less than consolidated sales in 2011