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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 operate

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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 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: Weekly Volume Range Total Fixed Costs (Number of Cases) per Week 1 Shift (0-1,000) $ 285 , 600 2 Shifts (1, 001-1, 800) 392, 700 3 Shifts (1, 801-2,500) 583, 100 Required: a. Calculate the break-even point(s). b-1. Calculate the profit (or loss) for each alternative, assuming Sawyer's Lubricants can sell all the oil it can produce. b-2. Should Sawyer's Lubricants operate at one, two, or three shifts? Complete this question by entering your answers in the tabs below. Reg A Reg B1 Reg B2

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