Whitman Drycleaners has the capacity to clean up to 6,000 garments per month. Requirements 1. Complete the schedule provided for the three volumes shown. 2. Why does the average cost per garment change? 3. The owner, Ellen Whitman, uses the average cost per unit at full capacity to predict total costs at a volume of 3,000 garments. Would she overestimate or underestimate 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 Total variable costs Total fixed costs Total operating costs Variable cost per garment 4,500 6,000 Garments Garments Garments $ 3,375 Fixed cost per garment 2.40 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 while the variable cost per unit Requirement 3. The owner, Ellen Whitman, uses the average cost per unit at full capacity to predict total costs at a volume of 3,000 garments. Would she overestimate or underestimate total costs? By how much? She would her costs by