Wisconsin Snowmobile Corp. is considering a switch to level production. Cost efficiencies would occur under level production, and aftertax costs would decline by $42,000, but inventory would increase by $420,000. 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.

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.)

$42.000, but inmventory would increase by $420,000, Wisconsin Snowmabile wauld have to fnance the extra inventary at a coes wmabile Corp is considenng a satch to level praduction Cost efficiencies woukd occur under level production and aftertax costs wauld declne I ot 11 5 nercent a-1. Determine the extra cost or savings of switching over to level production a-2. Shoukd the company 0 ahead and swlch level producthon? b. How low would interest rares need foll betore level production would B teosible? (Input your answer as a percent rounded to the nearest whole number.) Interest rate