Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer the Image attached write comment as answer don't send pic Pound Dry Cleaners has capacity to clean up to 5,000 garments per month.

Please answer the Image attached write comment as answer don't send pic

image text in transcribed
Pound Dry Cleaners has capacity to clean up to 5,000 garments per month. Requirements Complete the following schedule for the three volumes shown. 2. Why does the average cost per garment change? 3. Suppose the owner, Dan Pound, 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? . . . Requirement 1. Complete the schedule below for the three volumes shown. (Round all unit costs to the nearest cent and all total costs to the nearest whole dollar.) 2,000 3,500 5,000 Garments Garments Garments Total variable costs $ 3,150 Total fixed costs Total operating costs Variable cost per garment Fixed cost per garment $ 1.80 Average cost per garment Requirement 2. Why does the average cost per garment change? The average cost per garment changes as volume changes, due to the component of the dry cleaner's costs. The cost per unit decreases as volume while the variable cost per unit

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

Management And Cost Accounting

Authors: Alnoor Bhimani, Srikant M. Datar, Charles T. Horngren, Madhav V. Rajan

7th Edition

1292232668, 978-1292232669

More Books

Students also viewed these Accounting questions

Question

What is contract administration and who performs it?

Answered: 1 week ago

Question

L02 Review the main sources of genetic diversity.

Answered: 1 week ago

Question

Subjective norms, i.e. the norms of the target group

Answered: 1 week ago

Question

The relevance of the information to the interpreter

Answered: 1 week ago