Perreth Drycleaners has capacity to clean up to garments per month.
Requirements
Complete the schedule below for the three volumes shown.
Why does the average cost per garment change?
Suppose the owner, David Perreth, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of garments. Would he overestimate or underestimate his total costs? By how much?
Requirement 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.
tableTotal variable costs,tableGarmentstableGarmentstableGarments$Total fixed costs,,,,Total operating costs,,,Variable cost per garment,,,,Fixed cost per garment,,$Average cost per garment,,,,
