Please help Tesla Co. apply the conventional retail method. Below is necessary data to estimate its ending inventory.

	Cost			Retail
Beginning inventory	$	60,000		$	77,000
Net purchases		168,000			243,000
Net markups					36,000
Net markdowns					49,000
Net sales					234,000

What conventional cost-to-retail ratio percentage (rounded) should Tesla Co. use:

• 84.4%.

• 64.0%.

• 71.3%.

• 74.3%.