Bonus Question: GreenClean Dry Cleaners has a capacity to clean up to 6,000 garments per month.

a. Complete the following schedule for the three volumes shown:

	Garments Cleaned per Month
	3,000 Garments	4,500 Garments	6,000 Garments
Total Variable Costs		$3,825
Total Fixed Costs
Total Operating Costs	$11,550
Variable Cost/garment
Fixed Cost/garment		$2.00
Average cost/garment			$2.35

b. Why does the average cost per garment change with each volume level?

c. If the owner, Ms. Carson, uses the average cost per garment at FULL capacity to predict total costs at a volume of 3,000 garments, would he overestimate or under estimate to costs?