3. Skinny Pete Department Store has prepared the following sales budget for the next quarter: Skinny Pete's gross profit ratio is 40%. Each month's ending inventory must equal 25% of the cost of the merchandise to be sold in the following month. The merchandise inventory at October 1 was $45,000. The cost of merchandise to be purchased in November is: a. $170,000. b. $255,000. c. $265,000. d. $425,000