Data related to the inventories of kimzey medical supply are presented below: surgical surgical rehab rehab equipment supplies equipment supplies selling price $ 260 $ 120 $ 340 $ 165 cost 170 90 250 162 replacement cost 240 80 235 158 costs to sell 30 5 25 10 normal gross profit ratio 30 % 30 % 30 % 20 % in applying the lower of cost or market rule, the inventory of surgical equipment would be valued at:

You receive a memo from the vice president of procurement responding to your query. he writes: “it will be very important to maintain product continuity. we have a large base of devoted customers. we want to make sure that the quality and key characteristics of island knight stay the same through this transition. talk to frank, our consulting professional perfumer, for more information about the cologne. seasonal variations in costs are the single most significant factor in our deciding to go with another supplier, so finding a way to limit that should be the top priority. the overall marginal costs and shipping costs are probably somewhat less significant. you may want to talk to cindy, the product manager for island knight, regarding pricing information about the product.” what is the best action to take next?