The following selected accounts are taken from the ledger ofXYX Merchandisingon June 30, 2017:Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses, P150,000; merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30, 2017, P50,000; Accounts Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.

The cost of sales ratio or cost ratio is

Select one:

a. 60%

b. 62%

c. 40%

d. Answer not given.