Erin’s Boutique was recently destroyed by fire. For insurance purposes, she must determine the value of the destroyed inventory. She knows the following information about her 2012 operations before the fire occurred:

Beginning inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,500

Net purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,000

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000

Profit margin . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35%

Estimate the cost of Erin’s destroyed inventory.