Green Mailbox produces decorative mailboxes. The company's average cost per unit is $26.43 when it...
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Green Mailbox produces decorative mailboxes. The company's average cost per unit is $26.43 when it produces 1,600 mailboxes. Read the requirements. Requirement 1. What is the total cost of producing 1.600 mailboxes? The total cost of producing 1,600 mailboxes is Requirements 1. What is the total cost of producing 1,600 mailboxes? 2. If $21,488 of the total costs are fixed, what is the variable cost of producing each mailbox? 3. Write Green Mailbox's cost equation. 4. If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for 1,900 mailboxes? 5. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1,900 mailboxes? 6. What is the dollar difference between your answers to questions 4 and 5 ? Which approach to forecasting costs is appropriate? Why
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