A firm regularly purchases a raw material whose cost and usage profile mean it can appropriately be managed using the economic order quantity model. Currently the firm incurs total holding costs of 40,000 per annum as a result of ordering 16,000kg of raw materials each time it places an order. Currently the firm places 18 orders each year at a cost of 800 per order. If the firm decides to instead order at the economic order quantity, the savings it will make in total holding costs per annum is closest to:

A. 14,000

B. 12,000

C. 16,000

D. 10,000