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9. value: 4.00 points Wisconsin Snowmobile Corp. is considering a switch to level production. Cost efficiencies would occur under level production, and aftertax costs would
9. value: 4.00 points Wisconsin Snowmobile Corp. is considering a switch to level production. Cost efficiencies would occur under level production, and aftertax costs would decline by $60,000, but inventory would increase by $500,000. Wisconsin Snowmobile would have to finance the extra inventory at a cost of 13.0 percent. a-1. Determine the extra cost or savings of switching over to level production. a-2. Should the company go ahead and switch to level production? Yes 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
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