Wisconsin snowmobile corp | Business & Finance homework help

Wisconsin Snowmobile Corp. is considering a switch to level production. Cost efficiencies would occur under level production, and aftertax costs would decline by $30,000, but inventory costs would increase by $250,000. Wisconsin Snowmobile would have to finance the extra inventory at a cost of 13.5 percent

a.Should the company go ahead and switch to level production?

b.How low would interest rates need to fall before level production would be feasible?

"Get 15% discount on your first 3 orders with us"
Use the following coupon
"FIRST15"

Order Now