Pillar Drycleaners has capacity to clean up to 6,000 garments per month. Requirements 1. Complete the schedule below for the three volumes shown. 2.
Pillar 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, Damien Pillar, 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 pent and all total costs to the nearest whole dollar) 3,000 t 4,500 Garments Garments 6,000 Garments Total variable costs 1500 $ 2.250 3000 18000 18000 18000 Total fixed costs 19500 20250 21000 Total operating costs Variable cost per garment $ 2.00 Fixed cost per garment Average coat par garment
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