Exhibit 8-1
Rival Inc. uses the lower of cost or market rule in valuing its inventory. Assume the company uses the LIFO method and that one unit has a ceiling constraint of $45.50. The following is other information concerning this unit:
-Refer to Exhibit 8-1. The selling price of this unit must be

Question

Exhibit 8-1
Rival Inc. uses the lower of cost or market rule in valuing its inventory. Assume the company uses the LIFO method and that one unit has a ceiling constraint of $45.50. The following is other information concerning this unit: 
-Refer to Exhibit 8-1. The selling price of this unit must be

Quizplus · Accepted Answer

Given there's no specific Exhibit 8-1 provided, the correct answer cannot be determined without additional context or information about the unit's cost, desired profit margin, or any other factors that would influence the selling price. However, in a typical scenario, the selling price is calculated based on the cost of goods sold plus a markup for profit. Without the specific details from Exhibit 8-1, a precise explanation for why option C ($52.80) is correct cannot be provided.

Exhibit 8-1 Rival Inc. Uses the Lower of Cost or Market Rule