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Question 7, E6-22A (similar to) Mailbox Magic produces decorative mailboxes. The company's average cost per unit is $26.43 when it produces 1,600 mailboxes. Requirements 1.
Question 7, E6-22A (similar to) Mailbox Magic produces decorative mailboxes. The company's average cost per unit is $26.43 when it produces 1,600 mailboxes. Requirements 1. What is the total cost of producing 1,600 mailboxes? 2. If $21,488 of the total costs are fixed, what is the variable cost of producing each mailbox? 3. Write Mailbox Magic's cost equation If the plant manager uses the average cost per unit to predict total costs, what would the forecast be 5. If the plant manager uses the cost equation to predict total costs, what would the forocast be for 1,800 mailboxes? What is the dollar difference between your answers to questions 4 and 5? Which approach to forecasting costs is appropriate? Why? Requirement 1. What is the total cost of producing 1600 mailboxes? The total cost of producing 1,600 mailboxes is $
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