Determine the cost ratio (Retail Method) for Twilight Games and Comix Store if the cost of goods available for sale is $36,000 and the retail value of goods available for sale is $90,000. (Express your answer to the nearest one-thousandth).
To determine the cost ratio (Retail Method), you need to divide the cost of goods available for sale by the retail value of goods available for sale.
The cost ratio (Retail Method) is given by the formula:
Cost Ratio = Cost of Goods Available for Sale / Retail Value of Goods Available for Sale
In this case, the cost of goods available for sale is $36,000, and the retail value of goods available for sale is $90,000.
Using the formula, we can calculate the cost ratio as follows:
Cost Ratio = $36,000 / $90,000
Simplifying the division, we have:
Cost Ratio = 0.4
Therefore, the cost ratio (Retail Method) for Twilight Games and Comix Store is 0.4 (expressed to the nearest one-thousandth).