The CEBU BRANCH of MOCHI Company is billed for merchandise by the home office at 20 percent (20%) above cost. The branch in turn prices merchandise for sale purposes at 25 percent (25%) above billed price.

On January 25 all of the branch merchandise is destroyed by fire. No insurance was maintained. Branch accounts show the following information:

Inventory, Jan 1, 173,000

Sales Returns, 30,000

Shipments from Home Office (Jan 1-25), 200,000

Sales Discounts, 30,000

Sales 350,000.

What is the cost of the merchandise destroyed by fire?

• 114,375
• 97,500
• 99,500
• 110,833