Question
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.
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 .
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