Crane Sales Company Uses the Retail Inventory Method to Value

Multiple Choice

Crane Sales Company uses the retail inventory method to value its merchandise inventory. The following information is available for the current year: If the ending inventory is to be valued at the lower-of-cost-or-market, what is the cost-to-retail ratio?

A) $207,500 ÷ $285,000
B) $207,500 ÷ $293,500
C) $205,000 ÷ $295,000
D) $207,500 ÷ $283,500