Assume that variable costs increase to 45% of the current sales price and fixed costs increase by $13,900 per month. if sheridan were to raise its sales price 12% to cover these new costs, but the number of blankets sold were to drop by 5%, what would be the new annual operating income? (round sales price to 2 decimal places, e. g. 52.75 and final answer to 0 decimal places, e. g. 5,275.)

Wisconsin snowmobile corp. is considering a switch to level production. cost efficiencies would occur under level production, and after tax costs would decline by $36,000, but inventory would increase by $300,000. wisconsin snowmobile would have to finance the extra inventory at a cost of 13.5 percent.a. determine the extra cost or savings of switching over to level production. 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?