Answer is given to be D. $167, please show the working steps needed including all relevant formulas to derive the answer.

An electronic retailer earns on average $16,000 sales revenue per year and turns its inventory 6 times a year. The annual holding cost percentage is 50% for the products carried by this retailer. How much inventory holding cost would this retailer have to pay for a smart phone at the cost of $2,000 ? A. $1,000 B. $1,333 C. $500 D. \$167 E. $84