Peg's Toys Manufactures 89,500 Toys a Year

Peg's Toys manufactures 89,500 toys a year. As a normal procedure, the company orders raw materials in increments such that each order produces 500 toys. The fixed cost per order is $35. The toys wholesale at a price of $7.35 and have a variable cost of $3.98. What is the total restocking cost?

A) $2,025
B) $3,500
C) $3,625
D) $5,050
E) $6,265