37. At a lump-sum cost of $69,000, Pratt Company recently purchased the following items for resale: Item M N 0 No. of Items Purchased 4,000 2,000 6,000 Resale Price Per Unit $3.75 12.00 6.00 The appropriate cost per unit of inventory is: M N 0 ABOD A) $3.75 $12.00 $6.00 B) $3.38 $10.80 $5.40 $3.45 $11.04 $5.52 $5.75 $5.75 $5.75 38. The following information is available for October for Norton Company. Beginning inventory Net purchases Net sales Percentage markup on cost $400,000 1,200,000 2,400,000 66.67% A fire destroyed Norton's October 31 inventory, leaving undamaged inventory with a cost of $24,000. Using the gross profit method, the estimated ending inventory destroyed by fire is A) $136,000. B) $616,000. C) $640,000. D) $800,000.