Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Save Pillard Drycleaners has capacity to clean up to 6,000 garments per month Requirements 1. Complete the schedule below for the three volumes shown

image text in transcribed

Save Pillard Drycleaners has capacity to clean up to 6,000 garments per month Requirements 1. Complete the schedule below for the three volumes shown 2. Why does the average cost per garment change? 3. Suppose the owner, Dale Pillard, 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 much? 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 Garments 4,500 Garments 6,000 Garments Total variable costs $ 2,100 $ 3,150 $ 4.200 Total fixed costs 4800 10,800 19200 Total operating costs 6900 $ 13.950 23400 Variable cost per garment $ Foxed cost per garment 0.70 $ 10 $ 0.70 $ 070 2.40 32 Average cost per garment 23 $ 3.10 3.9

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

Fundamentals of Financial Accounting

Authors: Fred Phillips, Robert Libby, Patricia Libby

5th edition

78025915, 978-1259115400, 1259115402, 978-0078025914

More Books

Students also viewed these Accounting questions

Question

How to Calculate the Regression Line

Answered: 1 week ago