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Whats the answer for requirement 3? Pillard Drycleaners has capacity to clean up to 6,000 garments per month. Requirements 1. Complete the schedule below for

Whats the answer for requirement 3?image text in transcribed

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, Dennis 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.) 4,500 6,000 3,000 Garments Garments Garments S 2,100 S 3,150 $ 4,200 Total variable costs 8,100 8,100 8,100 Total fixed costs S 10,200 11,250 $ 12.300 Total operating costs Variable cost per gament S 0.70 S 0.70 $ 0.70 2.70 S 1.80 1.35 Fixed cost per garment 3.40 S S Average cost per garment 2.50 $ 2.05 Requirement 2. Why does the average cost per garment change? component of the dry cleaner's costs. The fixed The average cost per garment changes as volume changes, due to the fixed cost per unit decreases as volume increases while the variable cost per unit remains constant Requirement 3. Suppose the owner, Dennis 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? He would his costs by $ Choogo feom ow. liot or ontor om.ouabor in tho ionut fioldo ond thbon oliolk Choalk nouor

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