Alton company produces metal belts. during the current month, the company incurred the following product costs: raw materials $100,000; direct labor $75,000; electricity used in the factory $25,000; factory foreperson salary $3,750; and maintenance of factory machinery $2,000. alton company's indirect product costs totaled:

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?