Exhibit 9-1 Waring Inc - Refer to Exhibit 9-1

Exhibit 9-1 Waring Inc.uses the lower of cost or market rule in valuing its inventory.One unit has a ceiling constraint of $42.50.The following is other information concerning this unit:
$\begin{array}{ll}\text { Estimated transportation costs for delivery } & \$ 3.20 \\\text { Normal profit margin } & 5.50 \\\text { Packaging costs prior to delivery } & 2.20\end{array}$
- Refer to Exhibit 9-1.The floor constraint of this unit must be

A) $39.30
B) $37.00
C) $34.80
D) $31.60