From the explanation Step3, how do I get 64%?

Required information [The following information applies to the questions displayed below.] Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows: a. The inventory at January 1, 2019, had a retail value of $47,000 and a cost of $30,860 based on the conventional retail method. b. Transactions during 2019 were as follows: Cost $301.860 6.100 5.200 Retail $510.000 12.000 Gross purchases Purchase returns Purchase discounts Gross sales Sales returns Employee discounts Freight-in Net markups Net markdowns 476.000 8.000 6.000 27.500 27.000 12.000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2020, inventory was $92,560, the cost-to-retail percentage for 2020 under the LIFO retail method was 65%, and the appropriate price index was 104% of the January 1, 2020, price level. d. The retail value of the December 31, 2021, inventory was $50,290, the cost-to-retail percentage for 2021 under the LIFO retail method was 64%, and the appropriate price index was 107% of the January 1, 2020, price level. Required: 3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2020. Estimating ending inventory for 2020 and 2021. $ Total ending inventory at dollar-value LIFO retail cost, 2020 Total ending inventory at dollar-value LIFO retail cost, 2021 57,068 30,080 $ Explanation 3. 2020 Step 1 Step 2 Ending Ending Inventory Inventory Inventory Layers at Year-End at Base Year at Base Year Retail Prices Retail Prices Retail Prices $92.560 $92.560 = $89.000 $ 86,000 (base)^x 1.04 3.000 (2020) X Total ending inventory at dollar-value LIFO retail cost Step 3 Inventory Layers Converted to Cost 1.00 X 64%* = $55,040 1.04 X 65% = 2.028 $57.068 *The $86,000 base comes from the 2019 ending inventory at retail (see Requirement 2)