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Submit Pound Drycleaners has capacity to clean up to 7.500 garments per month Requirements 1. Complete the schedule below for the three volumes shown
Submit Pound Drycleaners has capacity to clean up to 7.500 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, Derrick Pound, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 4,500 garments. Would he overestimate or underestimate his total costs? By how much? CHD Requirement 1. Complete the following schedule for the three volumes shown. (Round all unit costs to the nearest cent art all total costs to the nearest whole dollar) 4,500 6,000 Garments Garments 7,500 Garments Total vanable costs 3,000 Total fixed costs 10800 14400 18000 Total operating costs Vanable cost per garment 0.65 240 Fixed cost per garment Average cost per garment Requirement 2. Why does the average cost per garment change? The average cost per garment changes as volume changes, due to the component of the dry cleaner's costs. The cost per unit decreases as volume whie ne variatie cost per un Requirement 3. Suppose the owner, Demick Pound, ononeously uses the average cost per unit at full capacity to predict total costs at a volume of 4,500 garments Would he overestimate or underestimate ha tokal costs? By how much? He would his costs by
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