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Petrov Dry Cleaners has capacity to clean up to 5,000 garments per month. Requirements 1. Complete the following schedule for the three volumes shown. 2.
Petrov Dry Cleaners has capacity to clean up to 5,000 garments per month. Requirements 1. Complete the following schedule for the three volumes shown. 2. Why does the average cost per garment change? 3. Suppose the owner, Dan , erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 2,000 garments. Would he overestimate or underestimate his total costs? By how much? Garments 2,000 Garment 3,500 ,Total variable Cost $ 3,375 , Fixed Cost $2.00
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