Royal Jewelry Corporation Produces Quality Jewelry Items for Various Retailers

Royal Jewelry Corporation produces quality jewelry items for various retailers.For the coming year,it has estimated it will consume 500 ounces of gold.Its carrying costs for a year are $2 per ounce.No safety stock is maintained.If the EOQ is 100 ounces,what would be the estimate for Royal Jewelry' total carrying costs for the coming year?

A) $200
B) $250
C) $100
D) $1,000