Renaud Drycleaners has capacity to clean up to 6,000 garments per month. Requirements 1. Complete the following

Question:

Renaud Drycleaners has capacity to clean up to 6,000 garments per month.
Requirements
1. Complete the following schedule for the three volumes shown.

2. Why does the average cost per garment change?
3. The owner, Guy Renaud, uses the average cost per unit at full capacity to predict total costs at a volume of 3,000 garments. Does he overestimate or underestimate his total costs? By how much?

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Managerial Accounting

ISBN: 978-0176223311

1st Canadian Edition

Authors: Karen Wilken Braun, Wendy Tietz, Walter Harrison, Rhonda Pyp

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Question Posted: Apr 30, 2015 10:48 AM

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Renaud Drycleaners has capacity to clean up to 6,000 garments per month. Requirements 1. Complete the following

Question:

3,000 Garments 4,500 Garments 6,000 Garments Total variable costs Total fixed costs Total operating costs $3,375 Variable cost per garment Fixed cost per garment Average cost per garment 2.20

Step by Step Answer:

Req 1 Use the two pieces of information provided to find total fixed costs and the variable cost per ...View the full answer

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