Question: Hello, please answer the question in picture attached. Write me the answers in comments I can not open images. Pound Dry Cleaners has capacity to
Hello, please answer the question in picture attached. Write me the answers in comments I can not open images.

Pound Dry Cleaners has capacity to clean up to 5,000 garments per month. Requirements 1. Complete the following schedule for the three volumes shown. 2. Why does the average cost per garment change? 3. Suppose the owner, Dan Pound, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 2,000 garments. Would he overestimate or underestimate his total costs? By how much? - . . Requirement 1. Complete the schedule below for the three volumes shown. (Round all unit costs to the nearest cent and all total costs to the nearest whole dollar.) 2,000 3,500 5,000 Garments Garments Garments Total variable costs $ 3,150 Total fixed costs Total operating costs Variable cost per garment Fixed cost per garment 1.80 Average cost per garment Requirement 2. Why does the average cost per garment change? The average cost per garment changes as volume changes, due to the component of the dry cleaner's costs. The cost per unit decreases as volume while the variable cost per unit
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
