Garcia Company uses the lower of cost or market rule in valuing its inventory. The floor constraint for one item in the inventory is $78.20. The following is other information concerning this unit:

Transportation costs: $4.90

Normal profit margin: $11.70

Packaging costs: $5.20

The net realizable value for this item is:

a. $66.50

b. $88.30

c. $89.90

d. $100.00

***PLEASE SHOW ALL WORK IN DEPTH***; WILL BE USING THIS TO STUDY FOR AN EXAM.