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Acme Mailbox produces decorative mailboxes. The company's average cost per unit is $27.43 when it produces 1.700 malboxes. Read the requirements. Requirement 1. Wrat is the lotat cost ot proeucing 1, ruU mandoxest The total cast of producing 1,700 mailboxes is Requirement 2. If $22,831 of the total costs are foxed, what is the variable cost of producing oach maibox? The variable cost per unit is Requirement 3. Wrte Acme Mailbox's cost equation. y=x+1 Requirement 4. If the plant manager uses the average cost per unit to predict tolal costs, what would the forecast be for 1.800 mailboxes? The total cost is Requirement 5 , If the plant manager uses the cost equation to predict total costr, what would the forecast be for 1,800 mailboxes? The total cost is Requirement 6. What is the dollar difference between your answors to Questions 4 and 5 ? Which approach to forecasting cosis is appropriate? Why? Thin plant managor's forocast would bo too high if holshe uses the 10 predict costs The is bused on a mixed cost that will change as volume changes, If the manager uses this mothod, haishe is arronoously assuming that the does not chango at different volumas. The thanaget should u6e the to predict cosis since if correcily takes into account the vatlable and foxed components of producing mailboxes. Requirements 1. What is the total cost of producing 1,700 mailboxes? 2. If $22,831 of the total costs are fixed, what is the variable cost of producing each mailbox? 3. Write Acme Mailbox's cost equation. 4. If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for 1,800 mailboxes? 5. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1,800 mailboxes? 6. What is the dollar difference between your answers to questions 4 and 5 ? Which approach to forecasting costs is appropriate? Why