The Beach Party Packages Horseradish and Mustards in a Factory

Essay

The Beach Party packages horseradish and mustards in a factory that can operate one,two,or three shifts.The product sells for $10 a case and has variable costs of $4 per case.Fixed costs are related to the number of shifts that are operated,with the estimated costs as follows:
$$\begin{array} { | l | r | r | } \hline & \text { Daly volume } & \text { Ficed Costs } \\\hline 1 \text { shift } & 0 - 2,000 & \$ 3,000 \\\hline \text { 2 shifts } & 2,001 - 4,000 & \$ 5,700 \\\hline \text { 3 shifts } & 4,001 - 6,000 & \$ 8,200 \\\hline\end{array}$$
Required:
(a)Determine the break-even point(s).(b)If Beach Party can sell all it can produce,how many shifts should be operated?