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Business, 27.06.2019 03:50 hHRS2997

Pillard drycleaners has capacity to clean up to 5 comma 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, dustin pillard, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 2 comma 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.) 2,000 3,500 5,000 garments garments garments total variable costs $1,800 $3,150 $4,500 total fixed costs 7,000 7,000 7,000 total operating costs $8,800 $10,150 $11,500 variable cost per garment $0.90 $0.90 $0.90 fixed cost per garment 3.50 $2.00 1.40 average cost per garment $4.40 $2.90 $2.30 requirement 2. why does the average cost per garment change? the average cost per garment changes as volume changes, due to the â–¼ component of the dry cleaner's costs. the â–¼ fixed variable cost per unit decreases as volume â–¼ decreases increases , while the variable cost per unit â–¼ decreases increases remains constant .

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