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Essay text:
However, in early 1991, the president of Play Time Toy Company, Jonathon King, was considering a change from seasonal to level production in the upcoming year.
Regardless of which method is used, the company's sales are seasonal with 80% of dollar volume sold between August and November. Under seasonal production, the cost of goods sold is 70% of sales. However, under level production, the cost of goods sold would slightly decrease to 61.16% of sales. With either production method, operating expenses will likely incur evenly throughout each month.
Under seasonal production, the company produces in response to customer orders...
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