Nu Company reported the following pretax data for its first year of operations.

Net sales		2,820
Cost of goods available for sale		2,420
Operating expenses		820
Effective tax rate		20	%
Ending inventories:
If LIFO is elected		850
If FIFO is elected		1,240

What is Nu's gross profit ratio if it elects LIFO? (Round your answer to the nearest whole percentage.)

Multiple Choice

• A. 63%.

• B. 44%.

• C. 58%.

• D. 23%.