A major retailer financial data for 2016 is as follows:

Inventories: 1400 $ millions

Sales: 17000 $millions

COGS: 16000 $millions

Assume that the average annual holding cost rate is 30 percent (i.e., it costs $3 to hold an item procured for $10 for one entire year). Calculate the average inventory cost of an item valued at $5 COGS?

A. $1.5

B. $0.13125

C. $0.15

D. We do not have enough information to answer this question