1. Pastore Drycleaners has capacity to clean up to 5,500 garments per month Requirements 1. Complete the schedule below for the three volumes shown. 2. Why does the average cost per garment change? 3. Suppose the owner, David Pastore, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 2,500 garments. Would he overestimate or underestimate his total costs? By how much? Requirement 1. Complete the following schedule for the three volumes shown. (Round all unit costs to the nearest cent and all total costs to the nearest whole dollar.) 2,500 Garments 4,000 Garments 3,600 5,500 Garments Total variable costs Total fixed costs Total operating costs Variable cost per garment Fixed cost per garment Average cost per garment Requirement 2. Why does the average cost per garment change? The average cost per garment changes as volume changes, due to the (1) - component of the dry cleaner's costs. The (2) - cost per unit decreases as volume (3) - ., while the variable cost per unit (4) Requirement 3. Suppose the owner, David Pastore, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 2,500 garments. Would he overestimate or underestimate his total costs? By how much? He would (5) his costs by $ costs by $ (1) O O fixed variable (2) O O fixed variable (3) O O decreases increases (4) O O O decreases increases remains constant (5) O O overestimate underestimate