DVDs Usually Sell for $14 Per Unit, and Have a Profit

Multiple Choice

DVDs usually sell for $14 per unit, and have a profit margin of 25%. However, theexpected selling price has fallen to $7 per unit. The Movie Company's current inventory includes 200 units purchased at $10 per unit. Calculate the value of the inventory at the lower of cost and net realizable value.

A) $1,350.
B) $1,800.
C) $2,000.
D) $1,400.
E) $1,500.