Refer to the data in the preceding problem. Assume that the store owner does not know the average retail markup over cost for the destroyed goods. The accounting records show that the total sales revenue during the 4 years preceding the fire amounted to \(\$ 1,000,000\) and the total cost of goods sold over the same period was \(\$ 650,000\)

a Assuming that the ratio of sales prices to cost of goods sold for the last 4 years holds for this year, estimate the cost of the goods destroyed in the fire b Assume the same facts as above, except that the \(\$ 1,000,000\) represents the original selling price of the goods sold during the last 4 years. Certain goods were marked down before sale so that the actual sales revenue was only \(\$ 975,000\). Assuming that the same percentage of goods were marked down by the same price during the first 6 months of this year as in the previous 4 years, estimate the cost of the goods destroyed by the fire.