Karloff Medical Supply Maintains an Average Inventory of 2,000 Human

Karloff Medical Supply maintains an average inventory of 2,000 human skulls for sale to medical schools and filmmakers. The carrying cost per skull per year is estimated to be $5. Boris places an
Order for 10,000 skulls on the first of each month and the order cost is $75. What are the total
Carrying costs under the current system?

A) $1,250
B) $2,500
C) $5,000
D) $10,000
E) $25,000