The following information was available from X company records:

Merchandise inventory at January 1, 2000: Cost $20,400; Retail $40,600

Purchases for 2000: Cost $175,600; Retail $231,000

Additional markups for 2000: Retail $8,400

Markdowns for 2000: $2,800

Sales for 2000: $221,200 Using the average lower of cost or market (conventional) retail inventory method, what is the approximate amount of ending merchandise inventory on 12/31/2000?

a.$ 41,075

b.$ 56,000

c.$ 39,200

d.$ 42,570