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# Smith Distributors, Inc., supplies ice cream shops with various toppings for making sundaes.

Smith Distributors, Inc., supplies ice cream shops with various toppings for making sundaes. On November 17, 2013, a fire resulted in the loss of all of the toppings stored in one section of the warehouse. The company must provide its insurance company with an estimate of the amount of inventory lost. The following information is available from the company's accounting records:

Fruit
Toppings

Marshmallow
Toppings

Chocolate
Toppings

Inventory, January 1, 2013

\$

20,000

\$

7,000

\$

3,000

Net purchases through Nov. 17

150,000

36,000

12,000

Net sales through Nov. 17

200,000

55,000

20,000

Historical gross profit ratio

20

%

30

%

35

%

--------------------------------------------------------------------------------

Required:

1.

Calculate the estimated cost of each of the toppings lost in the fire.

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