Carolines music store uses the average cost retail inventory method to determine its ending inventory. The accounting records for the current year for Carolines contain the following information:

Cost. Retail

Purchases. $108,000. $137,750

Beginning inventory. $28,000. $34,000

Sales. $156,900.

Net markups. $21,500

Net markdowns. $7500

Employee discounts. $14,500

What is the cost to retail percentage to be used for ending inventory calculations

A. 70.0%

B. 77.8%

C. 79.4%

D. 73.2%