Clarabell Inc. uses the conventional retail method to estimate ending inventory. Cost data for the most recent quarter is shown below: Cost Retail Beginning inventory $110,000 $192,000 Net purchases 404,000 705,000 Net markups 44,000 Net markdowns 22,000 Net sales 686,000 The conventional cost-to-retail percentage (rounded) is:

Multiple Choice

• a) 59.1%.

• b) 74.6%.

• c) 53.6%.

• d) 54.6%.