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The University Gift Shop purchases sweatshirts emblazoned with the school's name and logo from a vendor in Toronto. The vendor sells the sweatshirts to the

The University Gift Shop purchases sweatshirts emblazoned with the school's name and logo from a vendor in Toronto. The vendor sells the sweatshirts to the Gift Shop for $34.99 a piece. Shipping from Toronto to London costs $110 per order. When an order arrives, it has been estimated that receiving and inspection tasks cost the Gift Shop $25. The annual holding cost for a sweatshirt is calculated as 11% of the purchase cost. The Gift Shop manager estimates that 3100 sweatshirts will be sold during the upcoming academic year. Assume that there are 260 business days a year. If the economic order quantity is 500, what is the annual average inventory level?
A.3100
B.420.88
C.500
D.250
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