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Cesar's Bottlers bottles soft drinks in a factory that can operate one shift, two shifts, or three shifts per day. Each shift is eight hours
Cesar's Bottlers bottles soft drinks in a factory that can operate 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 $1.70 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.
1 Shift 2 Shifts 3 Shifts Daily Volume Range (Number of Cases Bottled) 0-2,000 2,001-3,600 3,601-5,000 Total Fixed Costs per Day $ 2,370 4,450 6,110
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