Requirement 6. What is the dollar difference between your answers to Questions 4 and 5? Which...

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Requirement 6. What is the dollar difference between your answers to Questions 4 and 5? Which approach to forecasting costs is appropriate? Why? The plant manager's forecast would be The (2) too high if he/she uses the (1) is based on a mixed cost that will change as volume changes. If the manager uses this (3) method, he/she is erroneously assuming that the manager should use the (4) fixed components of producing mailboxes. 1: Requirements to predict costs. does not change at different volumes. The to predict costs since it correctly takes into account the variable and 1. What is the total cost of producing 1,000 mailboxes? 2. If $10,430 of the total costs are fixed, what is the variable cost of producing each mailbox? 3. Write Rollins 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 1,100 mailboxes? 5. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1,100 mailboxes? 6. What is the dollar difference between your answers to questions 4 and 5? Which approach to forecasting costs is appropriate? Why? Requirement 6. What is the dollar difference between your answers to Questions 4 and 5? Which approach to forecasting costs is appropriate? Why? The plant manager's forecast would be The (2) too high if he/she uses the (1) is based on a mixed cost that will change as volume changes. If the manager uses this (3) method, he/she is erroneously assuming that the manager should use the (4) fixed components of producing mailboxes. 1: Requirements to predict costs. does not change at different volumes. The to predict costs since it correctly takes into account the variable and 1. What is the total cost of producing 1,000 mailboxes? 2. If $10,430 of the total costs are fixed, what is the variable cost of producing each mailbox? 3. Write Rollins 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 1,100 mailboxes? 5. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1,100 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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To calculate the dollar difference between the answers to questions 4 and 5 we need to subtract the ... View the full answer