Foster Products Company maintains a 40% gross profit on sales percentage. Foster had $60,000 in inventory on January 1, 20X3. Between January 1 and February 22, $780,000 of additional inventory was purchased. Sales of $1,000,000 were made during this same period. On February 22, 20X3, a fire destroyed all but $80,000 of the inventory. How much inventory was lost?

A. $160,000.

B. $180,000.

C. $240,000.

D. $320,000.

E. $360,000 .