Appendix 1 Year 1 Inventory Carrying Charges Outsourcing Option Beginning Ending Inventory Inventory January 30,000 0 February 30,000 0 March 30,000 0 Average Invetnory Inventory Carrying Costs $ $ $ April 27,000 0 May 25,000 0 June 25,000 July 23,000 August 21,000 September 22,000 October 23,000 0 November 23,000 0 December 21,000 0 SSSSSSS $ $ Total Inventory Carrying Costs