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Problem 1: On August 31, a hurricane destroyed a retail location of Sandhill's Clothier including the entire inventory on hand at the location. The inventory on hand as of June 30 totaled $1960000. Since June 30 until the time of the hurricane, the company made purchases of $534000 and had sales of $1532000. Assuming the rate of gross profit to selling price is 40%, what is the approximate value of the inventory that was destroyed?
Option 1: $1881200.Option 2: $1574800.Option 3: $1960000.Option 4: $1040800.
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