A bicycle manufacturer needs to order paint. Calculations indicate that 300 cans will be needed per year. The cost of each can is $15. The cost associated with each order is $10. The cost to store each can for a year is $0.60.
a. Develop a chart that clearly indicates the difference in storage costs, order costs, and total costs for ordering once, twice, three times, four times, five times, and six times.
b. Plot and identify the relevant costs on a graph.