Landers, Inc. has 8 units in inventory on December 31. The units were purchased in November for $200 each. The price lists from suppliers indicate the current replacement cost of the item to be $198 each. What is the effect on gross profit if Landers values its ending merchandise inventory using the lower-of-cost-or-market rule? O A. The gross profit would decrease by $16. OB. The gross profit would not be affected. OC. The gross profit would increase by $16. OD. The gross profit would increase by $2