On 1 September 2006, a business had inventory of $380,000. During the month, sales totalled $650,000 and purchases $480,000. On 30 September 2006 a fire destroyed some of the inventory. The undamaged goods in inventory were valued at $220,000. The business operates with a standard gross profit margin of 30%. Based on this information, what is the cost of the inventory destroyed in the fire? A $185,000 B $140,000 C $405,000 D $360,000 A |