Sawyer's Lubricants produces a specialty oll for machine lubrication. The production facility can operate one shift,...

 

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Sawyer's Lubricants produces a specialty oll 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 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 oll It can produce. b-2. Should Sawyer's Lubricants operate at one, two, or three shifts? Req A Weekly Volume Range (Number of Cases) (0-1,000) (1,001-1,800) (1,801-2,500) Complete this question by entering your answers in the tabs below. 1 shift 2 shifts 3 shifts Req B1 Total Fixed Costs per Week $ 285,600 392,700 583,100 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. Profit (Loss) < Req A Req B2 > Sawyer's Lubricants produces a specialty oll 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 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 oll It can produce. b-2. Should Sawyer's Lubricants operate at one, two, or three shifts? Req A Weekly Volume Range (Number of Cases) (0-1,000) (1,001-1,800) (1,801-2,500) Complete this question by entering your answers in the tabs below. 1 shift 2 shifts 3 shifts Req B1 Total Fixed Costs per Week $ 285,600 392,700 583,100 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. Profit (Loss) < Req A Req B2 >

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a Breakeven point The breakeven point BEP is the point where the companys total revenue equals its t... View the full answer