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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 $1.6 per case remain constant regardless of volume. Cesar's Bottlers can increase volume by opening and staffing additional shifts. The company has the following three choices: Daily Volume Range (Number of Cases Bottled) (0-2,000) (2,001- 3,600) (3,601- 5,000) Total Fixed Costs per Day $2,590 4,830 1 Shift 2 Shifts 3 Shifts 6,780 Required: a. Calculate the break-even point(s). (Round up your answers to the nearest whole number.) Break-even points cases cases 1 shift 2 shifts 3 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) 1 shift 2 shifts 3 shifts b-2. Should Cesar operate one, two, or three shifts? 1 shift 2 shifts 3 shifts
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