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Questions:
Which factors should Mr. Weir consider in deciding whether to adopt level production? (25 points)
What are the total savings from adopting level production? (25 points)
Evaluate the trade-off between profitability and liquidity in adopting seasonal or level productions (25 points)
Think about the concerns of Polar’s bank. As the banker, would you be willing to extend the line of credit to more than $4 million to finance level production? Why or why not? (25 points)
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