Cullumber 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$31000

$46000

Purchases200000

270000

Freight-in2600

Net markups

8600

Net markdowns

10500

Employee discounts

1000

Sales revenue

215000

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

$233600 $324600

$233600 $314100

$233600 $316000

$231000 $326500