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S6-1 Identify cost behavior (Learning The following chart shows three different costs: Cost A. Cost B, and Cost C. For each cost, the chart shows the total cost and cost per unit at two different volumes within the same relevant range. Based on this information, identify each cost as fixed, variable, or mixed. Explain your answers. At 4,000 units Cost per Total Cost Unit $ 42,000 S 10.50 $ 60,000 $15.00 $ 32,000 $8.00 NON At 5,000 units Cost per Total Cost Unit $ 50,000 $10.00 $ 60,000 $12.00 $ 40,000 $ 8.00 4 Cost A 5 Cost B 6 Cost C E6-21A Forecast costs at different volumes (Learning Objectives 1 & 2) Princeton Drycleaners has capacity to clean up to 5,000 garments per month. Requirements 1. Complete the following schedule for the three volumes shown. 2,000 Garments 3,500 Garments $2,100 5,000 Garments Total variable costs Total fixed costs Total operating costs Variable cost per garment Fixed cost per garment Average cost per garment $2.00 2. Why does the average cost per garment change? 3. Suppose the owner, Dale Princeton, 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