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I have already completed requirements 1 & 4. please assist with others. Mailbox Magic produces decorative mailboxes. The company's average cost per unit is $26.43
I have already completed requirements 1 & 4. please assist with others.
Mailbox Magic produces decorative mailboxes. The company's average cost per unit is $26.43 when it produces 1.600 mailboxes. Requirements 1. What is the total cost of producing 1.600 mailboxes? 2. If $21,488 of the total costs are fixed, what is the variable cost of producing each mailbox? 3. Write Mailbox Magic'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? 5. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1.800 mailboxes? 6. What is the dollar difference between your answers to questions 4 and 5? Which approach to forecasting costs is appropriate? Why? Requirement 1. What is the total cost of producing 1,600 mailboxes? The total cost of producing 1600 mailboxes is $ 42288 Requirement 2. If $21.488 of the total costs are fixed, what is the variable cost of producing each mailbox? The variable cost per unit is $ Requirement 3. Write Mailbox Magic's cost equation y = $X+$ 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 $ 47574 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 $ Requirement 6. What is the dollar difference between your answers to Questions 4 and 5? Which approach to forecasting costs is appropriate? Why? The plant manager's forecast would be s The too high if he/she uses 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 method, he/she is erroneously assuming that the manager should use the fixed components of producing mailboxes. Choose from any list or enter any number in the input fields and then continue to the next question Type here to search LStep by Step Solution
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