Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Parish Drycleaners has capacity to clean up to 6,000 garments per month. Requirements 1. Complete the schedule below for the three volumes shown. 2. Why

image text in transcribed
Parish Drycleaners has capacity to clean up to 6,000 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, Dennis Parish, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 3,000 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.) 3,000 4,500 6,000 Garments Garments Garments Total variable costs 1500 $ 2,925 3000 Total fixed costs 11700 11700 11700 13200 14625 Total operating costs 14700 Variable cost per garment 0.5 0.5 0.5 Fixed cost per garment 2.20 Average cost per garment

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Analyzing Superfund Economics, Science And Law

Authors: Richard L Revesz, Richard B Stewart

1st Edition

1317354796, 9781317354796

More Books

Students also viewed these Economics questions