Video solution:

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Written solution:

To make the largest possible $5$ digit number, we must maximize the first digit (the digit in the ten-thousands place).

The largest number that is strictly less than $10$ and divides $120$ is $8,$ so the first digit must be $8.$ Therefore, the product of the remaining number is $15.$

Similarly, we must now maximize the second digit.

The largest number that is less than $10$ and divides $15$ is $5,$ so the second digit is $5.$ Therefore, the product of the remaining number is $3.$

We must then maximize the third digit.

The largest number that is less than $10$ and divides $3$ is $3,$ so the third digit is $3.$ Therefore, the product of the remaining number is $1.$ This means the 4th and 5th digits are $1.$

This makes $N = 85311,$ so the sum of the digits is $$8+5+3+1+1=18$$

Thus, D is the correct answer.