Your investigations of the com pany's records have reveaied the following information: 1. Peak months for sales correspond with gift-giving holidays. History shows that January, March, May and June are the slowest months with only 1% of sales for each month. Sales pick up over the summer with July, August and September each contributing 2% to the total. Vaientine's Day in February boosts sales to 5%, and Easter in April accounts for 10%. As Christmas shopping picks up momentum, winter sales start at 15% in October, move to 20% in November and then peak at 40% in December. This pattern of sales is not expected to change in the next two years. 2- From previous experience, management has determined that an ending inventory equal to 25% of the next month's sales is required to t the buyer's demands- 3- Because sales are seasonal, Earinird must rent an additional storage facility from September to December to house the additional inventory on hand. The only related cost is a flat $1500 per month, payable at the beginning of the month