The Springbreak Company uses the retail inventory method. Information relating to the computation of the inventory at December 31, 2017 follows: Freight In 9,000 Sales 268,800 Net markups 22,000 Net markdowns 30,000 Sales discounts 24,000 Sales returns 36,000 Purchases discounts 42,000 Beginning Inventory Purchases Cost 50,000 $ 240,000 Retail 80,000 $ 396,000 a. Complete using lower the cost or market retail method. b. Complete using the average cost method