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Need help with the bottom portion of the question (fill in the Blanks) Postal Boxes produces decorative mailboxes. When it produces 2,800 mailboxes, the company's
Need help with the bottom portion of the question (fill in the Blanks)
Postal Boxes produces decorative mailboxes. When it produces 2,800 mailboxes, the company's average cost per unit is $28.50. a. What is the total cost of producing 2,800 mailboxes? b. If $18,000 of the total costs are fixed, what is the variable cost of producing each mailbox? c. Write Postal Boxes' cost equation d. If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for 3.200 mailboxes? e. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 3,200 mailboxes? f. What is the dollar difference between your answers to questions d and e? Which approach to forecasting costs is appropriate? Why? a. What is the total cost of producing 2,800 mailboxes? (Round your answer to the nearest whole dollar.) The total cost of producing 2,800 mailboxes is $ 79800- b. If $18,000 of the total costs are fixed, what is the variable cost of producing each mailbox? (Round your answer to the nearest cent.) The variable cost per unit is $ 22 c. Write Postal Boxes' cost equation. y- $ 22 +$ 18000 d. If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for 3,200 mailboxes? (Round your answer to the nearest whole dollar.) The total cost is S 91200. e. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 3,200 mailboxes? (Round your answer to the nearest whole dollar.) The total cost is S 88400 f. What is the dollar difference between your answers to questions d and e? Which approach to forecasting costs is appropriate? Why? (Round your answer to the nearest whole dollar.) The plant manager's forecast would be too high if he uses the to predict costs. The erroneously assuming that the does not change at different volumes. The manager should use the producing mailboxes. is based on a mixed cost that will change as volume changes. If the manager uses this method, he is to predict costs since it correctly takes into account the variable and fixed components ofStep by Step Solution
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