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cme Mailbox produces decorative mailboxes. The company's average cost per unit is $21.43 when it produces 1,100 mailboxes Requirements 1. What is the total cost
cme Mailbox produces decorative mailboxes. The company's average cost per unit is $21.43 when it produces 1,100 mailboxes Requirements 1. What is the total cost of producing 1,100 mailboxes? 2. If $10,373 of the total costs are fixed, what is the variable cost of producing each mailbox? 3. Write Acme Mailbox's cost equation. 4. If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for 1,800 mailboxes? If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1,800 mailboxes? 5. What is the dollar difference between your answers to questions 4 and 5? Which approach to forecasting -costs is annonnate2 whv2 6. me Mailbox's cost equation uiremen x+ S Requirement 4. If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for 1,800 mailboxes The total cost is $ Requirement 5. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1,800 mailboxes? The total cost is $ equirement 6. What is the dollar difference between your answers to Questions 4 and 57 Which approach to forecasting costs is appropriat too high if he/she uses the The plant manager's forecast would be $ The method, he/she is erroneously assuming that the manager should use the to predict costs is based on a mixed cost that will change as volume changes. If the manager uses this does not change at different volumes. The to predict costs since it correctly takes into account the variable and
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