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Question - TiCo has 1,000 units of merchandise on hand at year end. Each unit cost $32, has a replacement cost $29, has an estimated selling price of $42, has a disposal cost of $4, and has an estimated normal mark-up of $7. Assume that ceiling for each unit is $33 and the floor is $27. What per unit amount will TiCo use for ending inventory on its balance sheet?
a. $32
b. $29
c. $33
d. $27
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