Estimate the amount of funds required and the timing of need

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Question 1: What is your recommendation for Mr. Weir? What factors should Mr. Weir consider in deciding whether to adopt level production?

Question 2: What are the total savings from adopting level production?

Question 3: Estimate the amount of funds required and the timing of the needs under level production. Does Polar need more than $4 Million in short term financing in any given month?

Question 4: Thinking about Polar's Bank, as their banker would you be willing to extend the line of credit to more than $4 Million to finance level production? Why or why not?

Question 5: What other sources could substitute in part for bank lending if the lender is not willing to extend the present line of credit?

Question 6: Compare the liability patterns feasible under the alternative production plans. What implications do their differences have for the risk assumed by the various parties?

Question 7: What would be the impact of unsold inventory on cash flows and projected cost savings?

Reference no: EM132886192

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