Question: ? 5 0 - 2 3 A Forecast costs at different volumes ( Learning Objectives 1 & 2 ) Farnsworth Drycleaners has capacity to clean

?50-23A Forecast costs at different volumes (Learning Objectives 1 & 2)
Farnsworth Drycleaners has capacity to clean up to 7,500 garments per month.
Requirements
Complete the following schedule for the three volumes shown.
\table[[,4,500 Garments,6,000 Garments,7,500 Garments],[,,$4,200,],[Toral variable costs,,,-],[Trat fixed costs,,-,],[Total operating costs,,,],[varible cost per garment,,$2.40,],[Fxed cost per garment,,,],[Averge cost per garment,,,]]
Why does the average cost per garment change?
Suppose the owner, Dustin Farnsworth, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 4,500 garments. Would he
? 5 0 - 2 3 A Forecast costs at different volumes

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