Rollins Mailbox 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 Rollins 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 1,900 mailboxes? 5. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1,900 mailboxes? What is the dollar difference between your answers to questions 4 and 5? Which approach to forecasting costs is appropriate? Why? 6. Requirement 1. What is the total cost of producing 1,600 mailboxes? The total cost of producing 1,600 mailboxes is $ Requirement 2. If $21,488 of the total costs are fixed, what is the variable cost of producing each mailbox? The variable cost per unit is $ Requirement 3. Write Rollins Mailbox's cost equation. y $ x+$ Requirement 4. If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for 1,900 mailboxes? The total cost is S Requirement 5. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1,900 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? too high if he/she uses the The plant manager's forecast would be $ to predict costs is based on a mixed cost that will change as volume changes. If the manager uses this The method, he/she is erroneously assuming that the does not change at different volumes. The to predict costs since it correctly takes into account the varlable and manager should use the fixed components of producing mailboxes