Natalie's Cabinets Makes Cabinets at an Average Cost of $2,000

Multiple Choice

Natalie's Cabinets makes cabinets at an average cost of $2,000.Last year, Natalie sold 5,000 units of the cabinets and had an annual turnover rate of 4 times.Natalie has estimated her inventory carrying cost to be 25 percent.What was Natalie's annual inventory carrying cost?

A) $625,000
B) $250,000
C) $312,500
D) $125,000