Data related to the inventories of Kimzey Medical Supply are presented below Selling price Cost Replacement cost Costs to sell Normal gross profit ratio Surgical Equipment $265 175 245 32 20% Surgical Supplies $125 95 85 6 40% Rehab Equipment $345 255 240 26 20% Rehab Supplies $170 167 163 12 30% In applying the lower of cost or market rule, the inventory of surgical supplies would be valued at Multiple Choice O $95. $79. $85 $105