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Essay Details:
Essay text:
In reference to the first issue, it will be profitable for the company to change to level monthly production.
In reference to the second issue, Toy World has to get a bigger loan.
If the company follow this recommendations, it will obtain a profit of $ 531,000 that represents $180,000 more than with seasonal production
Background
Toy World, Inc is a manufacturer of plastic toys for children, founded in 1973 by David Dunton. In the past, the company's production schedules had always been highly seasonal, reflecting the seasonality of sales. Jack McClintock, president and part owner of this company, is considering a proposal to adopt level monthly production for the coming year...
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