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Cost Plank Co. uses the retail inventory method. The following information is available for the current year. Retail Beginning inventory $ 312,000 $488,000 Purchases 1,180,000 1,660,000 Freight-in 20,000 Employee discounts 8,000 Net markups 60,000 Net markdowns 80,000 Sales revenue 1,560,000 If the ending inventory is to be valued at approximately lower of average cost or market, the calculation of the cost ratio should be based on cost and retail of $1,200,000 and $1,720,000. $1,200,000 and $1,712,000. $1,512,000 and $2,208,000. $1,492,000 and $2,200,000