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Tatem Products, Inc., uses the lower of cost or market rule in valuing its inventory. One unit has a ceiling constraint of $64.30. The following
Tatem Products, Inc., uses the lower of cost or market rule in valuing its inventory. One unit has a ceiling constraint of $64.30. The following is other information concerning this unit:
| Transportation costs | $ 3.20 |
| Normal profit margin | 10.50 |
| Packaging costs | 2.80 |
The selling price of this unit must be
| a. | $54.60 |
| b. | $56.80 |
| c. | $63.30 |
| d. | $70.30 |
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