The Banks Company had its entire inventory destroyed when a fire swept through the company's warehouse on April 30, 2013. Fortunately, the accounting records were locked in a fireproof safe and were not damaged. The following information for the period up to the date of the fire was taken from the accounting records 
Required:
Assuming that the gross margin has averaged 35 percent of selling price, what is the estimated value of the inventory destroyed in the fire? Show all calculations in good form. 
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