Clarabell Inc. uses the conventional retail method to estimate ending inventory. Cost data for the most recent quarter is shown below: Cost Retail $123,000$202,000 Beginning inventory Net purchases 424,000 725,000 Net markups Net markdowns Net sales 50,000 20,000 696,000 The conventional cost-to-retail percentage (rounded) is: Multiple Choice 56.0%. 64.3%. 61.1%. 54.4%