EXERCISES Group A E6-20A Forecast costs at different volumes (Learning Objectives 1 & 2) Farnsworth Drycleaners has capacity to clean up to 7,500 garments per month. Requirements 1. Complete the following schedule for the three volumes shown. 4,500 Garments 6,000 Garments 7,500 Garments Total variable costs $4,200 Total fixed costs Total operating costs Variable cost per garment Fixed cost per garment $2.40 Average cost per garment 2. Why does the average cost per garment change? 3. 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 overesti- mate or underestimate his total costs? By how much