The Cherry Department Store uses the average cost retail inventory method to determine its ending inventory. The accounting records for the current year for Cherry contained the following information:

	Cost	Retail
Purchases	$61,200	$85,000
Beginning inventory	15,895	25,000
Sales		75,700
Net markups		7,500
Net markdowns		2,500

In addition, the accounting records for Cherry disclosed that purchases returns at cost and retail were $1,900 and $3,600, respectively. What is the cost-to-retail percentage to be used for ending inventory calculations?

a.	66.6%
b.	67.5%
c.	68.0%
d.	69.0%