Use the Information Below to Answer the Following Questions That

Multiple Choice

Use the information below to answer the following questions that refer to Table B-1. Based on the information in Table B-1, and given that the stockturn rate is 10, the cost of sales is:
$$\begin{array} { l c } { \text { Table B-1 } } \\\text { Gross sales } & \$ 650,000 \\\text { Returns } & \$ 40,000 \\\text { Allowances } & \$ 10,000 \\\text { Markdowns } & \$ 20,000 \\\text { Beginning inventory } & \$ 50,000 \\\text { Ending inventory } & \$ 30,000 \\\text { Expenses } & 25 \% \\\text { Stockturn rate } & 10 \\\text { Investment } & \$ 250,000\end{array}$$

A) $400,000.
B) $70,000.
C) $60,000.
D) $65,000.