Use for questions 16 and 17 -- The following information concerning the retail inventory method is taken from the financial records of Welch Company:

Cost Retail

Beginning inventory 49,000 76,000

Purchases 224.000 320,000

Freight in 6,000 --

Net markups -- 20,000

Net markdowns -- 14,000

Net Sales 336,000

17. If the ending inventory is to be valued at the lower of average cost or market, the calculation of the cost to retail ratio should be based on a cost to retail ratio of goods available for sale of:A. 279,000 and 416,000.B. 279,000 and 396,000.C. 279,000 and 390,000.D. 273,000 and 390,000.