Parrish Unpainted Furniture began April with inventory of \(\$ 42,000\). The business made net purchases of \(\$ 37,600\) and had net sales of \(\$ 60,000\) before a fire destroyed the company's inventory. For the past several years, Parrish's gross margin on sales has been 55 percent. Estimate the cost of the inventory destroyed by the fire.

\section*{CHALLENGE EXERCISES}