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Required Information [The following Information applies to the questions displayed below.] Sawyer's Lubricants produces a specialty oil for machine lubrication. The production facility can
Required Information [The following Information applies to the questions displayed below.] Sawyer's Lubricants produces a specialty oil for machine lubrication. The production facility can operate one shift, two shifts, or three shifts. The shift decision is made on a weekly basis, because of labor agreements. Each shift is eight hours long, five days per week. The factory is closed on weekends. The sales price of $432 per case and the variable cost of $194 per case remain constant regardless of volume. Sawyer's Lubricants can increase volume by opening and staffing additional shifts. The company has the following three choices: 1 Shift 2 Shifts 3 Shifts Weekly Volume Range (Number of Cases) (0-1,000) (1,001-1,800) (1,801-2,500) Total Fixed Costs per Week $ 285,600 392,700 583,100 b-1. Calculate the profit (or loss) for each alternative, assuming Sawyer's Lubricants can sell all the oil it can produce. Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Calculate the profit (or loss) for each alternative, assuming Sawyer's Lubricants can sell all the oil it can produce. Note: Loss amounts should be indicated with a minus sign. Round up your answers to the nearest whole number. 1 shift 2 shifts 3 shifts Profit (Loss)
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