Blossom Sales Company uses the retail inventory method to value its merchandise inventory. The following information is available for the current year:

Cost Retail

Beginning inventory $ 17000 $ 32000

Purchases 60000 130000

Freight-in 1200

Net markups 7200

Net markdowns 3500

Employee discounts 1000

Sales revenue 75000

If the ending inventory is to be valued at the lower-of-cost-or-market, what is the cost-to-retail ratio?

$78200 $162000

$78200 $165700

$77000 $165500

$78200 $169200