Drycleaners has capacity to clean up to

9 comma 000

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, Damien

Price

,

erroneously uses the average cost per unit at full capacity to predict total costs at a volume of

6 comma 000

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.)

	6,000	7,500	9,000
	Garments	Garments	Garments
Total variable costs	3600	$4,500	5400
Total fixed costs	13500	13500	13500
Total operating costs	17100	18000	18900
Variable cost per garment	0.6	0.6	0.6
Fixed cost per garment		$1.80
Average cost per garment		2.4

Enter any number in the edit fields and then click Check Answer.

i need a lil help find the fixed cost per garment .