Shelby Industries is ready to launch next year’s model of their best selling product Unfortunately,

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Shelby Industries is ready to launch next year’s model of their best selling product Unfortunately, they have found that customers are unwilling to pay more that $40 for last year’s model Based on the third quarter inventory values below, by how much should Shelby increase the Lower of Cost or Market reserve before closing the books for September 30th?

Description Units Market Value Inventory Cost

Remaining stock of last year’s model 3,500 $4000 $5000

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