Question
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 $10 per case bottled and the variable cost of $3 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) Total Fixed Costs per Day
1 Shift (05,000) $ 32,000
2 Shifts (5,0018,000) 29,000
3 Shifts (8,00110,000) 36,000
Calculate the break even points for shifts 1,2,and 3(how many cases for all 3)?
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