Acme Mailbox produces decorative mailboxes. The company's average cost per unit is $ when it produces mailboxes.
Read the equirements.
Requirement What is the total cost of producing mailboxes?
The total cost of producing mailboxes is
Requirement If $ of the total costs are fixed, what is the variable cost of producing each mailbox?
The variable cost per unit is
Requirements
What is the total cost of producing mailboxes?
If $ of the total costs are fixed, what is the variable cost of producing each mailbox?
Write Acme Mailbox's cost equation.
If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for mailboxes?
If the plant manager uses the cost equation to predict total costs, what would the forecast be for mailboxes?
What is the dollar difference between your answers to questions and Which approach to forecasting costs is appropriate? Why?
