A drawback of short-term contracting as an alternative to making a component in-house is that:. a. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent.
b. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.
c. it fails to allow a long planning period that individual market transactions provide.
d. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality.

Advanced enterprises reports year-end information from 2018 as follows: sales (160,250 units) $968,000 cost of goods sold 641,000 gross margin 327,000 operating expenses 263,000 operating income $64,000 advanced is developing the 2019 budget. in 2019 the company would like to increase selling prices by 14.5%, and as a result expects a decrease in sales volume of 9%. all other operating expenses are expected to remain constant. assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. should advanced increase the selling price in 2019?