At the beginning of the year, Grouper Athletic Supply had an inventory of $381,800. During the year, the company purchased goods costing $1,120,000. If the company reported ending inventory of $380,000 and sales of $1,580,000, their cost of goods sold and gross profit rate would be:

- $1,121,800 and 29%

- $740,000 and 29%

- $1,121,800 and 71%

- $740,000 and 71%

 the COGS is $1,121,800.

how to calculate the gross profit rate with this information?