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Cesar's Bottlers bottles soft drinks in a factory that can operate either one shift, two shifts, or three shifts per day. Each shift is eight
Cesar's Bottlers bottles soft drinks in a factory that can operate either one shift, two shifts, or three shifts per day. Each shift is eight hours long. The factory is closed on weekends. The sales price of $3 per case bottled and the variable cost of $1.9 per case remain constant regardless volume. Cesar's Bottlers can increase volume by opening and staffing additional shifts. The company has the following three choices: Total Fixed Costs per Daily Volume Range Cases Bottled) (0-2,000) (Number Day S 1,980 1 Shif (2 (3.601-5.000) 3 Shifts 5,120 Required: a. Calculate the break-even point(s). (Round up your answers to the nearest whole number.) Break-even points shift cases shifts cases shifts cases b-1. Calculate the profit (or loss) for each alternative, assuming Cesar can sell all the cases he can bottle. (Loss amounts should be indicated with a minus sign.) Profit (Loss) I shift 2 shifts 3 shifts b-2. Should Cesar operate one, two, or three shlfts? O 1 shift O a shifts OOO
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