Kelly Inc. forecasts that production will require 20,000 tons of material over its planning period. Demand for Kelly's products is stable over time. Ordering costs equal $5 per order. The holding cost per ton of material is $1.25. If Kelly Inc. uses an inventory quantity of 1,000 tons, what will be the total annual cost of inventory? O $125.00 O $400.00 O $725.00 O $12,600.00

Kelly Inc. forecasts that production will require 20,000 tons of material over its planning period. Demand for Kelly's products is stable over time. Ordering costs equal $5 per order. The holding cost per ton of material is $1.25. If Kelly Inc. uses an inventory quantity of 1,000 tons, what will be the total annual cost of inventory? $125.00 $400.00 $725.00 $12,600.00