If a make-to-stock manufacturing firm with highly seasonal demand follows a level production strategy, which of the following is likely to be true? A) Inventory will fluctuate significantly during the year.
B) The production rate must be set equal to the demand in the heaviest demand period, and stay at that level all year.
C) It will be difficult to keep the workforce size stable.
D) The firm must make sure that its maximum capacity is at least as high as the heaviest demand period.

Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan