Merle Industries had been selling its product for $44 per unit, but recently lowered the selling price to $27 per unit. The company's current inventory consists of 260 units purchased at $40 per unit. The market value of this inventory is currently $25 per unit. At what amount should the companys inventory be reported on the balance sheet?

• $10,400

• $11,440

• $6,500

• $7,020