Crest Industries sells a single model of satellite radio receivers for use in the home. The radios have the following price and cost characteristics: Sales price $80.00 per radio Variable costs $32.00 per radio Fixed costs $360,000.00 per month Crest is subject to an income tax rate of 40.00% a. How many receivers must Crest sell every month to break even? b. How many receivers must Crest sell to earn a monthly operating profit of $90,000.00 after taxes?

2. Cesar's Bottlers bottle 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 $2.00 per case bottled and the variable cost of $0.90 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 Total Fixed (# of cases bottled) Costs per Day 1 Shift 0 - 2,000 $1,980.00 2 Shifts 2,001 - 3,600 $3,740.00 3 Shifts 3,601 - 5,000 $5,170.00 a. Calculate the break-even point(s). b. If Cesar's Bottlers can sell all the units it can produce, should it operate at one, two or three shifts?