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Requirement 1. Complete the following schedule for the three volumes shown. (Round all unit costs to the nearest cent and all total costs to the
Requirement 1. Complete the following schedule for the three volumes shown. (Round all unit costs to the nearest cent and all total costs to the nearest whole dollar) 3,000 4,500 6,000 Garments Garments Garments Total variable costs Total fixed costs Total operating costs Variable cost per garment Fixed cost per garment Average cost per garment $ He would $ $ $ 2,700 S 9,900 12,600 S overestimate 0.90 $ 3.30 $ 4.20 $ his costs by $ underestimate 4,050 $ 9,900 13,950 $ Requirement 2. Why does the average cost per garment change? component of the dry cleaner's costs. The fixed cost per unit decreases as volume increases while the variable cost per unit remains constant The average cost per garment changes as volume changes, due to the fixed Requirement 3. Suppose the owner, Darren Perreth, 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 muc 0.90 $ 2.20 3.10 $ 5,400 9,900 15,300 0.90 1.65 2.55
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