5. Taipei Company uses the retail inventory method. The following information is available for the current year.

| | Cost | Retail |
| --- | --- | --- |
| Beginning inventory | $ 79,000 | $125,000 |
| Purchases | 300,000 | 415,000 |
| Freight-in | 10,200 | — |
| Employee discounts | — | 2,000 |
| Net markups | — | 20,000 |
| Net markdowns | — | 15,000 |
| Sales | — | 393,000 |

Instructions

I. If the ending inventory is to be valued at approximately lower-of-average-cost-or-net realizable value, the cost ratio should be \_\_\_\_\_(10)\_\_\_\_\_