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A company normally sells it products for $20 per unit, which includes a profit margin of 25%. However, the
selling price has fallen to $15 per unit. This company’s current inventory consists 200 units purchased at $16
per unit. Replacement cost has now fallen to $13 per unit. Calculate the value of inventory at the lower of
cost or market.
a. $2,550.
b. $2,600.
c. $2,700.
d. $3,000.
e. $3,200.

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