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 $2 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:

Required
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? Support youranswer.

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Daily Volume Range (Number of Cases Bottled) 1 Shift. .._ __.... 2 Shifts 3 Shifts Total Fixed Costs per Day $1,980 3,740 5,170 (0-2.000) (2,001-3,600) (3,601-5,000)