A Company's Normal Selling Price for Its Product Is $20

Multiple Choice

A company's normal selling price for its product is $20 per unit. However, due to market competition, 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 fallen to $13 per unit. Calculate the value of this company's inventory at the lower of cost or market.

A) $3,200.
B) $2,700.
C) $2,550.
D) $2,600.
E) $3,000.