10. Green Mailboxes produces decorative mailboxes. When it produces 1,400 mailboxes, the company's average cost per unit is $26.50. a. What is the total cost of producing 1,400 mailboxes? b. If $17,000 of the total costs are fixed, what is the variable cost of producing each mailbox? c. Write Green Mailboxes' cost equation. d. If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for 1,600 mailboxes? e. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1,600 mailboxes? f. What is the dollar difference between your answers to questions d and e? Which approach to forecasting costs is appropriate? Why? a. What is the total cost of producing 1,400 mailboxes? (Round your answer to the nearest whole dollar.) The total cost of producing 1,400 mailboxes is $ b. If $17,000 of the total costs are fixed, what is the variable cost of producing each mailbox? (Round your answer to the nearest cent.) The variable cost per unit is $ c. Write Green Mailboxes' cost equation. y=S x+$ d. If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for 1,600 mailboxes? (Round your answer to the nearest whole dollar.) The total cost is $ e. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1,600 mailboxes? (Round your answer to the nearest whole dollar.) The total cost is $ f. What is the dollar difference between your answers to questions d and e? Which approach to forecasting costs is appropriate? Why? (Round your answer to the nearest whole dollar.) The plant manager's forecast would be S volumes. The manager should use the (4). (1) average cost per unit cost equation total cost too high if he uses the (1). to predict costs. The (2) is based on a mixed cost that will change as volume changes. If the manager uses this method, he is erroneously assuming that the (3) to predict costs since it correctly takes into account the variable and fixed components of producing mailboxes. does not change at different average cost per unit (3) cost equation average cost per unit cost equation (4) average cost per unit cost equation total cost total cost total cost