Wisconsin Snowmobile Corp. is considering a switch to level production. Cost efficiencies would occur under level production, and after tax costs would decline by $53,900, but inventory would increase by $490,000. Wisconsin Snowmobile would have to finance the extra inventory at a cost of 12.0 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?

Bandar industries berhad of malaysia manufactures sporting equipment. one of the company’s products, a football helmet for the north american market, requires a special plastic. during the quarter ending june 30, the company manufactured 35,000 helmets, using 22,500 kilograms of plastic. the plastic cost the company $171,000. according to the standard cost card, each helmet should require 0.6 kilograms of plastic, at a cost of $8 per kilogram. 1. what is the standard quantity of kilograms of plastic (sq) that is allowed to make 35,000 helmets? 2. what is the standard materials cost allowed (sq x sp) to make 35,000 helmets? 3. what is the materials spending variance? 4. what is the materials price variance and the materials quantity variance?