Inventory turns per year problem

Jake Fleming sells distributor rebuild kits used on old Ford V-8 engines. Jake purchases these kits for $20 and sells about 250 kits per year. Each time Jake places an order, it costs him $25 to cover shipping and paperwork. Jake figures that the cost of holding a rebuild kit in inventory is about $3.50 per kit per year. How many inventory turns can be expected per year? A. approximately 8 B. approximately 11 C. approximately 15 D. approximately 22 Answer

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A. approximately 8

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