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 $ 112,000 $ 191,000

Net purchases 402,000 703,000

Net markups 43,000

Net markdowns 21,000

Net sales 685,000

The conventional cost-to-retail percentage (rounded) is:

a) 58.9%.

b)54.9%.

c)53.6%.

d)70.6%.