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Price Drycleaners has capacity to clean up to 5,500 garments per month Requirements 1. Complete the schedule below for the three volumes shown 2 Why

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Price Drycleaners has capacity to clean up to 5,500 garments per month Requirements 1. Complete the schedule below for the three volumes shown 2 Why does the average cost per garment change? 1. Suppose the owner, Dennis Price, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 2,500 garments. Would he overestimate or underestimate his total costs? By how much? 2.500 Garments 4,000 Garments $ 3,800 5,500 Garments Total variable costs Total fixed costs TI Total operating costs Variable cost per garment Fixed cost per garment $ 2.20 Average cost per garment

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