Marcus Company Uses the Lower of Cost or Market Rule $\begin{array}{ll}\text { Transpoutation costs } & \$ 4.00 \\\text { Normal profit margin } & 11.70 \\\text { Packaging costs } & 4.20\end{array}$

question 105

Multiple Choice

Marcus Company uses the lower of cost or market rule in valuing its inventory.The floor constraint for one item in the inventory is $58.20.The following is other information concerning this unit: $\begin{array}{ll}\text { Transpoutation costs } & \$ 4.00 \\\text { Normal profit margin } & 11.70 \\\text { Packaging costs } & 4.20\end{array}$ The market value for this item is

• A)$62.20
• B)$66.40
• C)$69.90
• D)$78.10