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Wisconsin Snowmobile Corp. is considering a switch to level production. Cost efficiencies would occur under level production, and aftertax costs would decline by $28,000, but inventory would increase by $280,000. Wisconsin Snowmobile would have to finance the extra inventory at a cost of 11.5 percent a-1. Determine the extra cost or savings of switching over to level production Loss of. Loss of Profit of a-2. Should the company go ahead and switch to level production? Yes No b. How low would interest rates need to fall before level production would be feasible? (Input your answer as a percent rounded to the nearest whole number.) Interest rate If you borrow $7,500 at $400 interest for one year, what is your effective interest rate for the following payment plans? (Input your answers as a percent rounded to 2 decimal places.) Effective Rate of Interest a. Annual payment b. Semiannual payments c. Quarterly payments d. |Monthly payments