Deluxe Auto Parts holds inventory all over the world. Suppose that the records for one auto part exhibit the given:
Beginning inventory....................$ 220,000
Net purchases...................... $ 800,000
Net sales...................................$1,100,000
Gross profit rate................... 45%
Assume that this inventory, stored in the United States, was lost in a fire.
Requirement:
Estimate the amount of the loss to Deluxe Auto Parts. Utilize the gross profit process.