Appendix 2 Year Two Inventory Carrying Charges Outsourcing Option Beginning Ending Average Inventory Inventory Inventory Inventory Carrying Costs January 34,000 0 $ February 34,000 0 $ March 34,000 0 $ April 31,000 0 May 28,000 0 June 28,000 0 July 27,000 0 August 25,000 0 September 25,000 0 October 27,000 0 November 27,000 0 $ December 25,000 0 $ Total Inventory Carrying Costs