E6-39B. (Learning Objective 4: Estimating inventory by the gross profit method) R T Company began June with inventory of €45,700. The business made net purchases of €39,100 and had net sales of €68,400 before a fire destroyed the company’s inventory. For the past several years, R T’s gross profit percentage has been 40%. Estimate the cost of the inventory destroyed by the fire. Identify another reason owners and managers use the gross profit method to estimate inventory.