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

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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 2 Shifts 3 Shifts (0-1,000) (1,001-1,800) (1,801-2,500) $ 285,600 392,700 583,100 Problem 3-65 (Static) Extensions of the CVP Model-Semifixed (Step) Costs (LO 3-2, 4) 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? 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 2 Shifts 3 Shifts (0-1,000) (1,001-1,800) (1,801-2,500) $ 285,600 392,700 583,100 Problem 3-65 (Static) Extensions of the CVP Model-Semifixed (Step) Costs (LO 3-2, 4) 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?