Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rollins Mailbox produces decorative mailboxes. The company's average cost per unit is $21.43 when it produces 1,100 mailboxes. Read the requirements Requirement 1. What is

image text in transcribed

Rollins Mailbox produces decorative mailboxes. The company's average cost per unit is $21.43 when it produces 1,100 mailboxes. Read the requirements Requirement 1. What is the total cost of producing 1.100 mailboxes? The total cost of producing 1.100 mailboxes is Requirement 2. If $10,373 of the total costs are foxed, what is the variable cost of producing each mailbox? The variable cost per unit is Requirement 3. Write Rollins Mailbox's cost equation. y = Requirement 4. If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for 1,400 mailboxes? The total cost is Requirement 5. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1.400 mailboxes? The total cost is Requirement 6. What is the dollar difference between your answers to Questions 4 and 5? Which approach to forecasting costs is appropriate? Why? The plant manager's forecast would be The method, he/she is erroneously assuming that the manager should use the fixed components of producing mailboxes too high if he/she uses the to predict costs is based on a mixed cost that will change as volume changes. If the manager uses this does not change at different volumes. The to predict costs since it correctly takes into account the variable and

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

The Human Resource Planning Audit

Authors: Peter Reilly

1st Edition

1907766111, 978-1907766114

More Books

Students also viewed these Accounting questions

Question

2. What efforts are countries making to reverse the brain drain?

Answered: 1 week ago