Skis Boots Apparel Supplies Selling price $ 180,000 $ 150,000 $ 120,000 $ 60,000 Cost 128,000 133,000 90,000 48,000 Replacement cost 120,000 130,000 110,000 50,000 Sales commission 10 % 10 % 10 % 10 % Normal gross profit ratio 20 % 20 % 15 % 15 % In applying the lower of cost or market rule, the inventory of boots would be valued at

When used-car dealers signal the quality of a used car with a warranty, a. buyers believe the signal because the cost of a false signal is high b. it is not rational to believe the signal because some used-car dealers are crooked c. the demand for lemons is eliminated d. the price of a lemon rises above the price of a good used car because warranty costs on lemons are greater than warranty costs on good used cars