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When applying the conventional retail method, how do net markups affect the cost-to-retail ratio? Keeps the...

When applying the conventional retail method, how do net markups affect the cost-to-retail ratio?

Keeps the cost-to-retail ratio stable
Raises the cost-to-retail ratio
Lowers the cost-to-retail ratio
None of these
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Answer #1
Net Markups lowers the cost-to-retail ratio when applying the conventional retail method.
Markups increase the retail value of inventory thereby lowering the cost-to-retail ratio
Option 3 is correct
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