The Martha Company Normally Sells Its Inventory at a 20

The Martha Company normally sells its inventory at a 20% profit margin on sales.In 2010, the net realizable value of inventory purchased for $50, 000 declined to $44, 000.There are no costs to complete and dispose of this inventory.What is the floor constraint on the valuation of this inventory using the lower of cost or market rule?

A) $35, 200
B) $40, 000
C) $44, 000
D) $50, 000