A company normally sells its product for $20 per unit.However,the selling price has fallen to $15 per unit.This company's current inventory consists of 200 units purchased at $16 per unit.Replacement cost has now fallen to $13 per unit.What is the amount of the lower cost of market adjustment the company must make as a result of this decline in value?
A)$1,000.
B)$1,400.
C)$400.
D)$600.
E)$800.

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The Answer of A company normally sells its product for $20 per unit.However,the selling price has fallen to $15 per unit.This company's current inventory consists of 200 units purchased at $16 per unit.Replacement cost has now fallen to $13 per unit.What is the amount of the lower cost of market adjustment the company must make as a result of this decline in value?
A)$1,000.
B)$1,400.
C)$400.
D)$600.
E)$800.

A Company Normally Sells Its Product for $20 Per Unit