Data below for the year ended December 31, 2016, relates to Houdini Inc. Houdini started business January 1, 2016, and uses the LIFO retail method to estimate ending inventory.

	Cost	Retail
Beginning inventory	$66,000	$104,000
Net purchases	280,000	420,000
Net markups		20,000
Net markdowns		40,000
Net sales		375,000

Current period cost-to-retail percentage is:

		70.0%.
		68.7%.
		63.6%.
		63.5%.