A Company Normally Sells Its Product for $20 Per Unit

question 63

Multiple Choice

A company normally sells its product for $20 per unit.However,the selling price has fallen to $15 per unit.This company's current inventory consists of 200 units purchased at $16 per unit.Replacement cost has now fallen to $13 per unit.What is the amount of the lower cost of market adjustment the company must make as a result of this decline in value?

• A)$1,000.
• B)$1,400.
• C)$400.
• D)$600.
• E)$800.

---

Definitions:

Exhalation

The process of breathing out, expelling air rich in carbon dioxide from the lungs to the outside environment.

Alveoli

Tiny air sacs in the lungs where gas exchange between the air and blood occurs.

Tissues

Groups of cells within an organism that work together to perform a specific function.

Oxygen Concentration

The amount of oxygen present in a given environment, often measured in terms of percentage or partial pressure.