(The forlowing information applies to the questions olisplayed below] Sawyer's Lubricants produces a specialty oil...
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(The forlowing information applies to the questions olisplayed 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: \begin{tabular}{l} Questions \\ \hline 1. What is the breakeven point in units for the 1-shift choice? \\ \hline 2. Is the 1-shift choice feasible? \\ \hline 3. Is the 2-shift choice feasible? \\ 4. Is the 3 -shift choice feasible? \\ \hline 5.IfSawyersLubricantscansellalltheoilitcanproduce,whatprofitcanbeexpectedforthe2-shiftchoice? \\ \hline \end{tabular}
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